Oil Pushes Past $80 a Barrel

Spread bets and CFDs on oil prices should consider that they have once again pushed above $80 a barrel. Thanks to the idea that the the Fed is likely to leave interest rates steady today, oil prices are rising as the U.S. dollar drops.

Indeed, oil prices often move inversely to the U.S. dollar, and the weakness in the greenback is providing support for oil prices in commodities trading. Additionally, oil is getting support from the fact that signs of economic recovery has speculators thinking that oil demand will be picking up soon. 

The American Petroleum Institute reports that crude oil stockpiles have dropped, and that could be a sign that demand is beginning to pick up. All of this news is combining to send oil prices higher. However, so far most of the gains are thought by some to be the result of speculation, rather than fundamentals. It is a good idea to be prepared for a possible correction.