Oil jumps 2% as soft dollar and tight supply offset recession concerns


By Noah Browning


LONDON (Reuters) -Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset concerns about and the prospect of widespread COVID-19 lockdowns in again reducing fuel demand.


futures for September settlement rose $2.44, or 2.4%, to $103.60 a barrel by 0900 GMT, having advanced by 2.1% on Friday.


U.S. West Texas Intermediate (WTI) crude futures for August delivery gained $2.17, or 2.2%, to $99.76 after rising by 1.9% in the previous session.


The U.S. dollar retreated from multi-year highs on Monday, supporting prices of commodities ranging from gold to oil. A weaker dollar makes dollar-denominated commodities more affordable for holders of other currencies.


Both Brent and WTI last week registered their biggest weekly declines for about a month on fears of a that would hit oil demand. Mass COVID-testing exercises continue in parts of this week, raising concerns over oil demand from the world’s second-largest oil consumer.


However, oil supplies remain tight. As expected, U.S. President Joe Biden’s trip to Saudi Arabia failed to yield any pledge from the top OPEC producer to boost oil supply.


Biden wants Gulf oil producers to step up output to help to lower oil prices and drive down inflation.


Global are focused this week on the resumption of Russian gas flows to Europe via the Nord Stream 1 pipeline, which is scheduled to end maintenance on July 21. Governments, and companies fear the shutdown could be extended because of the war in Ukraine.


will find support at the end of the week if Russia does not turn the gas back on to Germany after Nord Stream 1 maintenance,” said OANDA senior analyst Jeffrey Halley.


Loss of that gas to Germany, the world’s fourth-largest economy, would hit it hard and heighten the risk of .


(Reporting by Noah BrowningAdditional reporting by Sonali Paul in Melbourne and Florence Tan in SingaporeEditing by David Goodman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



Source link

Recent Posts

Scan to Download
ios&Android APP

Open trading account and start trading!

Join our happy customers