Oil prices rose on Thursday on the back of a weaker dollar NSE -0.15 %, but gains were capped by concerns about rising US oil inventories and a persistent surge in new coronavirus cases.<\/p>\n
Brent crude rose 35 cents, or 0.8 per cent, to $44.64 a barrel by 0837 GMT, while US West Texas Intermediate (WTI) crude gained 32 cents, or 0.8 per cent, to $42.22 a barrel.<\/p>\n
The US dollar index against a basket of currencies was trading on Thursday near its lowest since early March. A weaker dollar usually spurs buying of dollar-priced commodities as they become cheaper for holders of other currencies.<\/p>\n
“Genuine price support comes from the weak dollar, which helps physical oil demand,” Tamas Varga of oil brokerage PVM said.<\/p>\n
But rising US oil inventories put a break on further gains.<\/p>\n
US crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the US Energy Information Administration said on Wednesday, as a sharp rise in coronavirus cases starts to hit US consumption.<\/p>\n
The United States reported more than 1,000 deaths from COVID-19 on Tuesday, according to a Reuters tally, the first time since June 10 the nation exceeded that figure in a day.<\/p>\n
Barclays said on Thursday oil prices could see a correction in the near-term if a recovery in fuel demand slowed further, especially in the United States. The bank expects Brent to average $41 in 2020 and WTI to average $37.<\/p>\n
Adding to uncertainty in the market, US-Chinese relations deteriorated further as Washington gave Beijing 72 hours to close its consulate in Houston amid accusations of spying.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices rose on Thursday on the back of a weaker dollar NSE -0.15 %, but gains were capped by concerns about rising US oil inventories and a persistent surge in new coronavirus cases. Brent crude rose 35 cents, or 0.8 per cent, to $44.64 a barrel by 0837 GMT, while US West Texas Intermediate (WTI) crude gained 32 cents, or 0.8 per cent, to $42.22 a barrel. The US dollar index against a basket of currencies was trading on Thursday near its lowest since early March. A weaker dollar usually spurs buying of dollar-priced commodities as they become cheaper […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-364382","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/364382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=364382"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/364382\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=364382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=364382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=364382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}