A weak dollar, a weakening hurricane in the Gulf of Mexico and Iran charging three Americans with espionage are all helping give crude a boost this morning. The reflation trade is alive and well after the G20 did little but acknowledge that the dollar has turned into a funding currency (and one that remains overvalued) over the weekend, suggesting to most that the greenback has a way to fall before alarm bells go off in the halls of power. The hurricane looks likely to cause only a moderate disruption for a few days while the Iranian espionage charges are more of a wild-card. It makes one wonder if Iran is testing the resolve of the young American president…
Oil is up 2.25% around the $79.20 level in late morning trade.
