Oil was on fire this week!

Oil prices tethered to fundamentals

By Troy Media Wednesday, October 21, 2009

By Todd Hirsch
Prices rose to nearly $US 78 per barrel for West Texas Intermediate crude on Thursday. But the big question on everyone’s mind is: what’s driving the price increase? And, is it sustainable?

One big factor this week has been the depreciating US dollar. The greenback has slipped to the lowest level in more than a year, making dollar-denominated commodities like oil and gold more affordable for investors and consumers buying in other currencies (like euros or yen).

The talking heads on the news will surely bring up “the fundamentalsâ€