Oil Market Continues to Rise
Two years ago, crude oil was selling for about $35 a barrel. Today, after a steady climb since that low, that same barrel is selling for about $88. The move up off of those late 2008/early 2009 lows has been slow, but steady. Many consider this a good barameter of the state of the global economy. As the economies strengthen, the need for oil increases, which leads to higher prices. This market has taken it's time in this current bull run, but the recent buying pressure would seem to indicate that the global economy is finally starting to gain strength. The next thing to watch is the interest rate environment in each country. Rising interest rates are quite often the result of a pickup in the economy and with current rates so low, there is plenty of room for higher rates.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.