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Crude oil gains, boosted by dollar weakness

Apr 14, 2008 Market Outlook

Crude oil gains, boosted by dollar weakness

By Polya Lesova, MarketWatch

Last Update: 9:08 AM ET Apr 14, 2008

NEW YORK (MarketWatch) — Crude-oil futures rose early Monday, propelled higher
by the dollar’s decline against other major currencies after a statement from the
Group of Seven failed to bolster the greenback.

Crude oil for May delivery gained 90 cents at $111.04 a barrel on the New York
Mercantile Exchange.

On Friday, crude futures finished virtually flat at $110.14 a barrel, up 3 cents.

“Although fresh money continues to pick the long side, we find that net length is
still far below record levels, suggesting that long accumulation is proceeding at
a hesitant clip at best,” said Edward Meir, an analyst at MF Global, in a
research note.

“However, we believe fundamentals will dominate price direction this week, with
the dollar’s movements being paramount in this regard,” Meir said.

The dollar fell against most other major currencies, finding little lasting
support from worries by the Group of Seven industrial nations about volatility in
the foreign-exchange markets. The dollar index, which tracks the performance of
the greenback against a basket of other currencies, edged down 0.3% to 71.68. See
Currencies.
Click for Detail

The lack of any explicit warning about the weakness of the dollar itself and no
expectations for meaningful intervention offered little prospect that the
greenback would soon end its recent run of weakness against the euro, analysts
said. Read more about the G7.
Click for Detail

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Technorati Tags: Accumulation, Crude Futures, Crude Oil Futures, Currencies, Decline, Dollar Index, Dollar Weakness, Euro, Foreign Exchange Markets, Greenback, Meaningful Intervention, Meir, Mf Global, New York Mercantile, New York Mercantile Exchange, Paramount, Regard, Volatility, Worries, York Mercantile Exchange

Tags: Accumulation, Crude Futures, Crude Oil Futures, Currencies, Decline, Dollar Index, Dollar Weakness, Euro, Foreign Exchange Markets, Greenback, Meaningful Intervention, Meir, Mf Global, New York Mercantile, New York Mercantile Exchange, Paramount, Regard, Volatility, Worries, York Mercantile Exchange