Oil rallies above $124 on U.S. draw, dollar
By Gene Ramos
Brent oil jumped 2 percent to near $124 a barrel on Wednesday as U.S. crude oil inventories fell for the first time in seven weeks and the dollar weakened sharply, fueling investor appetite for riskier assets.
Oil’s rise was part of a broader commodities buying binge sparked by a weaker dollar, with gold setting a record above $1,500 an ounce. Persistent worries about U.S. fiscal health punished the greenback and drove investors to seek assets with potentially richer returns.
Oil also benefited from a rise in U.S. equities as the Dow Jones industrial average . ended at the highest level in almost three years after strong corporate earnings reports.