Oil tops $73 High Demand and US Dollar Weakness Main Factors

As the cold season gets underway heating oil demand has risen and boosted the price of crude. The overall weakness of the US dollar has appreciated the prices of commodities based on the US currency

Oil jumped 2% Monday on optimism about the pace of global economic recovery and as cold weather across the United States boosted fuel demand.

The National Weather Service said total U.S. heating demand will be higher than normal this week as the first seasonal wave of cold weather hits the Northeast and Midwest.

U.S. crude rose $1.50 to settle at $73.27 a barrel, the highest settlement since Aug. 24.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza