Oil inclined slightly today as the dollar's slipped against a basket of major currencies, increasing the appeal of the black gold as an alternative investment. Crude prices dropped on Friday on concerns after the downbeat earnings by large U.S. companies such as Burlington Northern Santa Fe Corp. and Boston Scientific Corp.
Earnings of the third quarter missed analysts' forecasts, causing a drop in U.S. stocks after three straight weekly gains. Also, the incline in U.S. housing starts participated in the fall. However, Asian stocks bounced today on better-than expected profits by the world's largest automaker, Toyota, and as the South Korean economy expanded the most in seven years. The Japanese Nikkei Index closed on the highest gains in 4 weeks on better outlook and as the yen plunged.
In the currency market, the dollar inched lower today paring some of Friday's advance. The dollar index, a gauge of the dollar's strength against a basket of major currencies, slipped to 75.36 from the opening at 75.44. The green currency is now close to 14-month low which gave the chance for oil to rebound slightly.
Oil contract on Friday shed $0.69 closing at $80.50, while recording a high of $81.78 per barrel and a low of $79.55 per barrel, while it is currently traded at $79.95 recording a high of $80.05 and a low of $79.55. Oil is expected to face a resistance at $82.00, while gaining support at $75.00. The black gold reversed from an overbought area after it had reached one-year high above $80 a barrel last week. Prices faced a downside pressure as many investors sold the commodity to take profits.