Despite a strengthening US Dollar, Crude Oil prices appear to be on the rise. Many investors have expressed a more long-term perspective on the oil spill in the Gulf of Mexico and anticipate rising oil prices in the near future. This speculation combined with a sudden draw-down in US oil inventories helped this commodity to gain sharply in last minute trading yesterday.
The sentiment that oil prices will rise does have merit. Even while oil prices were dropping sharply amid the Greek bailout crisis in Europe, a large number of commodity speculators were counting on a quick rebound. Once momentum turned in favor of this notion, a band-wagon effect took place and we've seen Crude Oil rebound to trade just under $75 a barrel, up from $67 just a few days ago.
However, if today's NFP figures prove positive, we should see the USD gain strength and put some pressure on Crude Oil to correct downwards a bit through mid-day trading.