Cameron Hanover – Daily Energy Hedger – October 29, 2010

A sustained and rather steep decline in the US dollar was the major influence behind higher oil prices on Thursday. Gasoline prices continued to reap the benefits of a larger-than-expected drawdown in inventories in Wednesday’s DOE statistics, but all three members of the Nymex oil complex (crude, heating and gasoline) were higher on Thursday. Equities spent most of the day in negative territory, and that helped prevent the gains in oil prices from being even larger. The underlying reason for a close in negative territory for equities was uncertainty over the Fed’s eventual QE2 policy.