As the Federal Reserve stimulus keeps weakening the dollar, price of crude oil is expected to touch its six-months high during this time. This is so because more and more investors are getting drawn towards investing into this area.
Some also believe that it may return back to the $100. If that happens then it will be the first time since 2008 that the fuel will reach the mark. At that time the rise happened because the banks were pumping in money at that time and wanted the economy to grow.
But in the last two months, the dollar index has dropped 7 per cent and now since the Fed is going extend its bond-purchase program which is luring more and more investors.
Looking at the same, experts like Antoine Halff, head of energy research at Newedge USA LLC in New York and others in the IEA believe that more liquidity has come into the system in the last two years time. This means more money for the commodities and so the rise in crude prices.
