Oil Gets Spanked By Stronger Dollar
This morning, WTI oil is trading sharply lower by $3.74 to $105.51 a barrel. When the U.S. Dollar rallies higher most commodities will come under some selling pressure. The United States Oil Fund(NYSE:USO) is trading lower by $1.32 to $41.94 a share. Traders can watch the $40.90 area for intra-day support. This is also a likely bounce area for the USO should it trade down to this level.
Many leading energy stocks are trading sharply lower this morning. Exxon Mobil Corp.(NYSE:XOM), Chevron Corp.(NYSE:CVX, and ConocoPhillips(NYSE:COP), are a few of the giant integrated energy stocks that are coming under selling pressure from a stronger U.S. Dollar. Traders should understand that if the U.S. Dollar continues to move higher most leading energy stocks could trade lower. On the flip side, if the U.S. Dollar begins to fade and trade lower these energy leaders will likely bounce higher.