Oil prices resume push to upside as dollar bounce abates

0
40
Oil prices resume push to upside as dollar bounce abates


Oil futures traded higher Tuesday, with Brent crude resuming a push to the upside as a bounce by the U.S. dollar appeared to lose steam.

West Texas Intermediate crude for February delivery
CL.1,
+1.53%

CLG21,
+1.53%

rose 81 cents, or 1.6%, to $53.06 a barrel on the New York Mercantile Exchange. March Brent crude
BRN00,
+1.60%

BRNH21,
+1.60%
,
the global benchmark, was up 84 cents, or 1.5%, at $56.50 a barrel.

WTI eked out a one-cent gain on Monday for its highest close since February, while Brent lost ground. Analysts said crude was taking a cue in part from equities, which were firmer after a modest Monday pullback.

“Crude prices are following the broader move into risky assets today,” said Edward Moya, senior market analyst at Oanda, in a note.

“It seems energy traders are just looking for a reason to buy as the macro outlook seems to be very positive once we get past these next few months. Earlier oil was boosted on a weaker dollar, but those declines have been kept in check,” he said.

The ICE U.S. Dollar Index
DXY,
-0.03%
,
which tracks the currency against a basket of six major rivals, was flat after bouncing late last week and Monday from a 2 1/2-year low. A weaker dollar is seen as a positive for commodities priced in the currency, making them cheaper to overseas buyers.

Some of Monday’s weakness in oil prices was attributed to worries the continued rise in COVID-19 cases and increased lockdowns would undercut demand.

February natural-gas futures
NGG21,
+4.59%

were up 4.1% at $2.861 per million British thermal units.

February gasoline futures
RBG21,
+1.54%

rose 1.6% at $1.5445 a gallon, while February heating oil
HOG21,
+1.45%

gained 1.6% to trade at $1.5985 a gallon.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here