Address

Precise Investors

Sunday, July 25, 2021
Trading

Oil prices rise as weaker dollar supports commodities

dollar supports

U.S. WTI crude futures for May delivery were up 53 cents, or 0.8%, to $63.91 barrel

Oil prices rose on Tuesday as a weaker U.S. dollar supported commodities and on expectations that crude inventories fell in the United States, the world’s biggest oil user, though rising coronavirus cases in Asia capped gains.

Brent crude futures for June delivery advanced by 54 cents, or 0.8%, to $67.59 a barrel.

U.S. West Texas Intermediate (WTI) crude futures for May delivery, which expire on Tuesday, were up 53 cents, or 0.8%, to $63.91 barrel. The more-active June contract was at $63.93, up 0.8%, or 50 cents.

Buyers using other currencies pay less for dollar-denominated oil when the greenback weakens.

U.S. dollar weakness continues to offer support to the commodities complex despite concerns over oil demand in certain regions, ING Economics said in a note.

The dollar index tumbled to a six-week low against other major currencies on Monday following a slump in U.S. Treasury yields last week and remained near the low at 91.055 on Tuesday.

Also supporting prices, U.S. crude oil and distillate stockpiles were expected to have fallen last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of reports from industry group American Petroleum Institute (API) due on Tuesday and the Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, on Wednesday.

Libya’s National Oil Corp (NOC) declared force majeure on Monday on exports from the port of Hariga and said it could extend the measure to other facilities because of a budget dispute with the country’s central bank.

The disruption could cut Libya’s oil output by 280,000 barrels per day (bpd), knocking production below 1 million bpd for the first time since October, ING said.

Saudi Arabia’s crude oil exports dropped to their lowest in eight months in February, the Joint Organisations Data Initiative (JODI) said on Monday, illustrating the world’s biggest oil exporter’s commitment to its voluntarily output cap to support oil prices.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

2 × three =