Home News US oil closes above $40 for first time since Dec. 3

US oil closes above $40 for first time since Dec. 3

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It’s never easy to understand how oil prices work, because it’s a confluence of several factors:

  1. Actual supply and demand
  2. Predictions of supply and demand
  3. The strength of the dollar in relation to other currencies (weaker dollar means we have to pay more for a barrel of oil)

Oil prices hit 2016 highs on Thursday, with U.S. crude closing over $40, on optimism that major producers will strike an output freeze deal next month amid soaring gasoline demand in the United States.A weaker dollar after a Federal Reserve policy decision on Wednesday that indicated two U.S. rate hikes this year instead of four also drew oil buyers using currencies such as the euro.

Read Full Story: US oil closes above $40 for first time since Dec. 3