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West TX Oil Surges to $49 on Weak Dollar

U.S. crude settled 3.6 percent up at $49.21 a barrel on Wednesday as a weaker dollar, fighting in Yemen and speculative buying boosted prices in spite of U.S. inventories building to record highs for an 11th week.

The dollar fell after disappointing U.S. durable goods orders for February. A weaker dollar makes commodities denominated in the greenback cheaper for holders of other currencies, typically boosting demand for such raw materials.

The dollar also fell against the euro after Europe’s largest economy Germany reported that its business morale rise for the fifth month in a row in March, hitting the highest since July 2014. In France, business morale peaked at near 3-year highs.

CNBC [1]

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