Crude Oil continued to rise during last week. Crude Oil saw a very strong and coherent bullish trend during almost all of last week's trading sessions. By the end of the week a barrel of oil had risen in price by $6 and is currently trading near $79.
The most significant reason for the rally of crude oil is the sliding Dollar. Because Crude Oil is traded in Dollars, the usual affect of the weakening Dollar is the strengthening of oil.
Furthermore, in a week that the USD saw a 1-year low against the Euro, and the EUR/USD pair almost reaches the 1.50 level, crude oil prices are likely to appreciate. In addition, the batch of positive data from the U.S economy last week has reinforced the sensation that the global economy is indeed recovering. Investors assume that this means that oil demand will increase as a result, and thus the price of crude oil rose.
Looking ahead to this week, traders are advised to follow the major publications from the U.S and the Euro-Zone as they will have an immense effect on the value of oil. In addition, traders should also follow the Crude Oil Inventories weekly report, which is expected on Wednesday. This report tends to have an immediate impact on crude oil, and traders should take advantage of it.