While the greenback has gotten a post-Brexit lift, the Federal Reserve’s impact on the greenback looms large. On Wednesday, Federal Open Market Committee (FOMC) meeting minutes revealed the Fed is concerned about the U.S. labor market. That is prompting some traders to think an interest rate hike this year is nearly out of the question, making the dollar’s recent rally all the more impressive.
Obviously, production is a key element in the decision-making process regarding energy investments. Currently, oil investors face conflicting reports regarding output. For example, Venezuela’s crude output is plunging to multi-year lows while Algeria is looking to boost production. Both countries are members of the Organization of Petroleum Exporting Countries (OPEC).
Related: A Very Bullish Call for Oil ETFs
“Crude stocks are just 20 million barrels shy of the 541 million barrels seen earlier in the year – itself the highest level in over 90 years. Meanwhile, gasoline inventories are at their highest level in at least 20 years, and edging higher at a time we should be seeing them drawn down by peak summer driving demand,” adds OilPrice.com.
For more information on the Oil ETFs, visit our Oil category.
PowerShares DB U.S. Dollar Index Bullish Fund
