Connect with us

Hi, what are you looking for?

Commodities & Futures

Oil Edges Higher Toward $64 on Weaker Dollar, Demand Optimism

Commodities17 minutes ago (Apr 19, 2021 08:54PM ET)

(C) Reuters. Oil Edges Higher Toward $64 on Weaker Dollar, Demand Optimism

(Bloomberg) — Oil edged higher toward $64 a barrel, aided by a weaker dollar, as traders monitored a patchwork demand recovery from the pandemic.

West Texas Intermediate rose 0.2% in Asia after closing modestly higher on Monday. In the U.S., refinery runs climbed to the highest in over a year as economic activity picked up, but oil demand in India is suffering amid a brutal fresh wave of coronavirus infections. The dollar fell for a sixth straight session on Monday, boosting the appeal of commodities priced in the currency.

Crude is up more than 30% in 2021 as investors bet the reopening of economies will stoke consumption and keep draining global inventories. As demand picks up, the Organization of Petroleum Exporting Countries and its allies are planning a cautious return of some supply from next month. The OPEC+ grouping may skip a full-scale ministerial meeting planned for next week, possibly indicating members don’t see much need to revise current strategy.

Oil’s forward curve suggests growing confidence, with the widely watched spread between WTI’s contracts for December this year and 2022 at the widest backwardation in about a month. That’s a bullish pattern, with prices for the final month of 2021 more than $4 a barrel above those a year further out. Brent’s prompt spread is also backwardated, with a gap of 60 cents a barrel.

At present, OPEC+ has decided to revive just over 2 million barrels a day of the 8 million it’s been keeping offline, with the supply to be returned in stages over the three months to July. If the ministerial gathering is scrapped, the coalition may go ahead with just a monitoring committee meeting on April 28.

Later Tuesday, investors across markets will track a high-profile speech from China’s President Xi Jinping at the Boao Forum on Asia. The address is expected to touch on the risks and challenges that the world is facing, and what solutions China can offer to promote development and prosperity.

(C)2021 Bloomberg L.P.

Oil Edges Higher Toward $64 on Weaker Dollar, Demand Optimism

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved