Oil Prices Continue to Rise, Helped by a Lower U.S. Dollar

Oil Prices Continue to Rise, Helped by a Lower U.S. Dollar

Greenback and oil prices

Last week, the U.S. tapped its strategic reserves, and the IEA released oil into the markets. The move temporarily sent oil prices lower, but they have been stubbornly higher recently.

Some of it has to do with speculation that demand could pick up. However, the lower U.S. dollar has something to with it as well. Oil prices and the dollar often move inversely to each other, and because oil prices are denominated in dollars, when the dollar falls, oil prices tend to rise.

With a weaker U.S. dollar expected in forex trading for a while, there will be little check higher oil prices -- even as reserves are tapped.