Crude Oil Ends Sharply Higher As Dollar Weakens; Gains 4% For Week

U.S. crude oil ended sharply higher on Friday, as the dollar tumbled against a basket of major currencies, under pressure from the Fed's statement regarding rate hikes. Investors largely ignored the supply glut situation, despite indications that global stockpiles will continue to rise. Oil futures recorded a weekly gain of about 4 percent, for the first time in five weeks. With the Federal Reserve providing a somewhat muddled outlook on interest rate hikes two days ago, most commodities and currencies took off on a roller-coaster ride. The Fed withdrew its promise to be patient on interest rate hikes, but then downgraded its assessment of the U.S. economy and signaled tightening would not occur until the second half of the year. Fed Chief Janet Yellen took a dovish stand with some lower outlook for inflation and GDP growth, signaling that interest rate is likely to rise at a slower pace than expected earlier. Crude oil initially rallied on the Fed's statement indicating rate hikes will be pushed out until at least July, but prices then moved back toward recent 6-year lows.

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