Oil rising in price amid US dollar decline
Global oil prices on May 14 afternoon are growing on the weakening of the US dollar, according to trading data, Report informs referring to Prime agency.
As of 14:11 (GMT+4), the price of July futures for the North Sea Brent oil blend grew by 0.85 percent to $67.62 per barrel, while the prices of June futures for WTI crude grew by 0.86 percent to $64.37 per barrel.
The rise in oil prices is taking place against the backdrop of a weak US dollar, the index of which (the dollar’s exchange rate against a basket of currencies of six countries – the main trading partners of the US) decreased by 0.22 percent, to 90.55 points. Investors estimate the data on annual inflation in the US, which accelerated in April to 4.2 percent instead of the expected 3.6 percent. The depreciation of the US currency makes commodities more attractive to buy.
“The energy market is benefiting from the general risk-on rally following yesterday’s broad-based selloff in risk assets over US inflation concerns,” said Kevin Solomon, an analyst at brokerage StoneX Group. “The market will be angling for any further evidence for improvements in oil consumption.”
Prices are still headed for a weekly fall with the spread of Covid-19 in Asia menacing demand.
Singapore will reimpose curbs, Japan plans to extend restrictions and China saw its first coronavirus infections in about a month. Key oil importer India continues to report more than 300,000 cases a day.