Oil prices yo yo to hover around US$78 a barrel

17-Nov-09

Though oil prices have dipped, they continue to hover around US$78 a barrel, as traders took profit ahead of the release of key US indicators and the weekly fuel inventories report. Oil began the week on a high note as a weaker dollar supported hedging activities, while better-than-expected US consumer spending data also buoyed hopes of energy demand recovery in the world's largest oil consumer. Markets will watch for any comments on currencies when US President and Chinese President make statements, along with release of economic data from the United States, including industrial output, producer prices and redbook retail sales. Additionally, Asian stocks rose to more than 15-month highs after U.S. Federal Reserve Chairman repeated the central bank was likely to hold interest rates at very low levels for some time, keeping the dollar .DXY pinned near 15-month lows and gold close to record highs.