OIL & GAS

Oil edges up on weak dollar; investors weigh rising supplies, demand outlook

Oil prices edged up in early Asian trade on Friday, supported by a weaker dollar, as investors weighed rising supplies and the impact on fuel demand from the COVID-19 pandemic.

Brent crude futures for June climbed 7 cents, or 0.1 per cent, to $63.27 a barrel by 0106 GMT while U.S. West Texas Intermediate (WTI) crude for May was at $59.77 a barrel, up 17 cents, or 0.3 per cent.

“A weaker USD and falling US bond yields helped support investors’ appetite in commodity markets,” ANZ analysts said in a note. A weaker dollar makes oil cheaper for holders of other currencies, which usually helps boost crude prices.

Both contracts are on track to post a 2 per cent-3 per cent drop this week after a decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+, to gradually increase supplies by 2 million barrels per day between May and July.

However, analysts expect global oil inventories to continue to fall as fuel demand accelerates in the second half of this year as the global economic recovery gathers steam.

Source
ET Energy World
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