Oil continued its rally for the ninth day in a row, reaching it highest level in a year above $80 a barrel as stocks bounced and the dollar tumbled.
Crude prices gained more than 20% since reaching $66 a barrel on September 25. The contract on Monday surged $0.94 closing at $79.96, while recording a high of $80.05 per barrel and a low of $78.45 per barrel.
U.S. stock's rally lifted prices yesterday as Dow Jones reached 12-month high on buoyant earnings by large firms. Apple posted profits higher than estimates, referring that the U.S. economy is recovering. Still, other large firms will release earnings this week.
On the other hand, the green currency slipped versus a basket of major currencies as indicated by the dollar index which retreated further today to 75.18 compared with the opening at 75.22, below the lowest level in 14 months. A robust outlook and optimist are raising investor's risk appetite which sapped demand on the dollar.
The dollar's decline enhanced demand on commodities as alternative investment. Yesterday, commodity futures indexes gained; S&P GSCI added 6.83 points to 515.03 and RJ/CRB Commodity edged up 3.55 points to 279.65.
Later on today, the American Petroleum Institute (API) will release its weekly report with expectations to show a drop in U.S. inventory for the second week, while the EIA report is due tomorrow. Last week, the EIA report showed that U.S. gasoline and stockpiles slipped more than expectations.
Now, oil is traded at $79.52 recording a high of $79.62 and a low of $78.05. Oil is expected to face a resistance at 82.00, while gaining support at $75.00.