US dollar  

The US Dollar Index (UUP) rose 0.18% to 92.58 on January 9, 2018. It rose 0.71% in the last five trading sessions. The US dollar rose due to short covering. It has been recovering from a three-month low. The appreciating dollar could have limited the upside for US crude oil (SCO) prices. US oil (UCO) prices rose 4.3% in the last five trading sessions due to several bullish drivers.

Higher oil prices favor funds like the iShares U.S. Energy ETF (IYE) and the iShares Global Energy ETF (IXC).

US Dollar Recovering from 3-Month Low: Bearish for Crude Oil?

The US Dollar Index fell ~9.8% in 2017. The dollar fell partly due to the improving economy outside the US. It was the worst annual drop since 2003. However, US crude oil prices rose ~12.4% in 2017, partly supported by a weak dollar. Higher oil (USO) prices benefit energy companies (FXN) (FENY) like Laredo Petroleum (LPI), Stone Energy (SGY), and Whiting Petroleum (WLL). 

US dollar’s lows and highs  

The US dollar hit 91.3 on September 8, 2017—the lowest level in 33 months. It impacts the PowerShares DB US Dollar Bullish ETF (UUP), which tracks the US dollar’s performance. On the other hand, the US dollar hit 103.8 on January 3, 2017—the highest level in 14 years.


The Fed might hike the US interest rate three times in 2018, which could support the US dollar. However, the improving economy outside the US could see the US dollar lag its peers. The European Central Bank could hike interest rates by the end of 2018. Moves in the US dollar could be reflected in oil (DWT) prices.

Next, we’ll discuss some crude oil price forecasts.

Latest articles

Berkshire Hathaway CEO Warren Buffett has spoken openly about his stock repurchasing strategy, calling it "simple arithmetic." How does he do it?

In a research note released yesterday, Apple (AAPL) analyst Ming Chi Kuo noted that more people from the US could choose the iPhone Pro than the iPhone 11.

Two Saudi Aramco crude oil facilities were attacked by Iran-backed Houthi rebels using drones. At 10:23 AM, Brent crude oil was trading up 11.2% at $67.

While tech stocks fell sharply in late 2018, they surged again in 2019. How could the market react if tech stocks post lower-than-expected earnings?

Today at 2:10 PM ET, the S&P 500 Index fell 0.3% as investors watched rising oil prices. The cannabis sector also fell today, as its ETFs traded in the red.

NVIDIA (NVDA) stock had fallen over 1% in today's trading session as of 10:50 AM ET. The stock was also down in premarket trading.