Oil is dollar commodity
Now due to weak economic condition in US, the dollar is already weak. Now in Europe, also Canada and Japan, their currencies have become stronger as compared to the dollar. So they can buy more dollar-commodities at a cheaper rate.
As a result these countries can afford to buy more oil at a cheaper rate. Hence there is a huge demand for oil from these countries and more the demand, the oil price is going to rise.
In addition to the high demand, such countries are buying more and more oil to hedge against inflation because tomorrow no one knows what the scenario will be!
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