
Crude Oil rose above UD$75bbl to settle at a record high on the year Wednesday as economic optimism hinted at a recovery in global energy demand. US crude settled up US$1.03 at US$75.18 bbl, the highest settlement since October 14, 2008. Brent Light Crude settled up 70 cents to US$73.10 bbl. Support was provided by a weakened US$ which slipped to its lowest level in more than a year, making dollar denominated commodities like Crude Oil and Gold more affordable for holders of other currencies. “The dollar is weak and people are buying commodities, that’s by far the sole and exclusive reason we’ve seen behind the crude rally today,” said Tom Knight, broker at Truman Arnold in Texarkana, Texas. “There are those who also see the rally in equities as supportive, as it raises hopes for improving oil demand.” Crude Oil has more than doubled from below US$33 bbl last December in anticipation of this economic recovery.
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