Oil is up to a two year high due to the weak dollar and advancing equities.
Futures have gone up for the seventh day in a row because the dollar is going down from a one week high compared to the euro.
The Energy Department will release a report tomorrow and it may show an increase in crude stockpiles of 1.75 million barrels in the last week.
This will bring crude stockpiles up to 368.2 million which is the largest since May of 2009.
Crude for December delivery has gone up 57 cents, 0.7 percent, to $87.63 per barrel in the New York Mercantile Exchange. This is the highest price since October 2008.
Yesterday, the New York contract went up 21 cents to $87.06, it's highest settlement since October 8, 2008.
Futures have gone up 78 percent in 2009 and gained 9.4 percent this year. Prices have also gone up in the last six days to match the longest streak of rises since April.
Oil and the dollar are moving in opposite directions and they seem to move in tandem. The New York crude futures showed a correlation of minus 0.79 when compared to currency.
Andrey Kryuchenkov, a London analyst at VTB Capital, said, "Financial factors like the euro-dollar and equities are driving the recovery, but sustained gains on the back of fundamentals are unlikely."
"Inventories are plentiful, there are no serious supply disruptions and the dollar rebound is capping gains."
Tags: weak dollar, crude stockpiles, Oil, Futures
