Oil rises past $54 aided by drop in dollar amid demand optimism
Oil rose past $54 a barrel with help from a falling dollar after jumping the most in three weeks on optimism over the demand outlook.
Futures in New York headed for the highest close in almost a year after being swept up with a rally in US stocks to rise 2.6% Monday. Saudi Aramco said it sees demand returning to pre-virus levels later this year. Royal Dutch Shell Plc raided the North Sea market, buying the most benchmark-grade cargoes in a single day in 10 years in the S&P Global Platts pricing window. A weakening dollar boosts the appeal of commodities that are priced in the currency.
Crude’s futures curve kept strengthening, suggesting the large stockpiles built up last year are shrinking fast and will continue to do so. Brent’s prompt timespread is 27 cents a barrel in backwardation, a bullish market structure where near-dated prices are more expensive than later-dated ones.
