Excerpt from: Futures and Commodity News
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| March 10, 2008 | | Oil futures remain high on commodities market | Despite a lack in solid fundamentals to support oil prices at above $105 per barrel, oil futures remain high on the commodities market. With dollar weakness in currency trading, buying oil in commodities trading is considered a hedge. The Associated Press reports on oil prices in commodities trading:
Crude futures offer a hedge against a falling dollar, and oil futures
bought and sold in dollars are more attractive to foreign investors
when the dollar is falling. Most investors believe that despite
occasional rebounds, the dollar is likely to keep falling as the Fed
continues to cut rates. | | |
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