Crude oil prices for July rose to its highest intraday price in 6 weeks to US$78.6 on the Nymex, as markets get more confident of global economic recovery after China indicated an end to the yuan’s fixed rate to the dollar. China has effectively pegged the yuan at about 6.8 to the dollar since mid-2008 to prop up exporters during the world financial crisis. Anticipation rose of higher demand from Chinese consumers after a statement by the People's Bank of China that it would "strengthen the flexibility" of the country's currency. Buying power of the Chinese consumer will likely increase as a result of the appreciating yuan, leading to increased exports to China. Asian stock markets also moved up a few notches.
However, China has explained that any appreciation of the yuan would be gradual. Should the yuan appreciate against the dollar, then that is likely bullish for oil.