|Analysis||Crude oil gained for the second day above $77 a barrel after Dubai's debt woes has eased and ahead of important data due later on today.|
Oil prices jumped 1.6% overnight paring previous losses incurred last week after Dubai's news which aroused skeptics with regard recovery. However, the United Arab Emirates pledged to support for banks and Dubai world started discussions to restructure $26 billion of debt which spurred optimism in markets.
U.S. stocks advanced last night and Asian shares gained today on speculations Japan will not allow its currency to appreciate more. In addition, manufacturing improved in China before the release of manufacturing data in the U.S. later in the day. MSCI Asia Pacific Index touched two-weeks high and Nikkei closed on the highest gains in 2 weeks.
On the other hand, the U.S. dollar and Japanese yen slipped today as optimism eroded demand on lower-yielding currencies. The dollar index, a gauge of the dollar movements versus a basket of major currencies, plunged to 75.57 from today's opening at 74.82. The dollar's slid enhanced demand on commodities as an inflation hedge.
Moreover, the American Petroleum Institute will release its weekly report today to show demand on crude inventories in the U.S. last week, where the EIA report will be released tomorrow.
Oil is currently traded at $74.59 recording a high of $75.08 and a low of $74.57, whereas the contract on Monday edged up $1.23 closing at $77.28, while recording a high of $78.00 per barrel and a low of $75.13 per barrel.