|Analysis||Crude oil rose above $74 a barrel as Asian stocks gained and U.S. dollar slipped against majors.|
Oil prices inclined on Monday after dropping for two days, paring some of the previous losses, as Asian equities bounced after announcements by the U.A.E. central bank that it will support for banks which lowered concerns that Dubai debt woes would escalate. The upbeat news which aroused skeptics last week boosted confidence again and enhanced demand on higher-yielding assets. The MSCI Asia Pacific Index jumped to the highest in eight months today, while Nikkei Index advanced 2.9%.
On the other hand, the U.S. dollar plunged today versus a basket of major currencies as indicated by the dollar index which plummeted to 75.50 compared with Friday's closing at 74.96. The dollar's decline encouraged demand on commodities as a hedge against inflation.
Oil is currently traded at $76.70 recording a high of $76.77 and a low of $75.80, whereas the contract on Friday edged down $1.91 closing at $76.05, while recording a high of $77.94 per barrel and a low of $72.39 per barrel.