Brent crude sustained at $70/barrel and above, could require future fuel price reviews    2021 International Women's Day highlights transformative power of equal participation: UN    Bibliotheca Alexandrina presents webinar on Arab-Islamic Heritage    Pope Francis calls for peace in Iraq's post-IS Mosul    Egypt's Al-Sisi orders increasing medical convoys, mobile clinics under ‘Decent Life' initiative    Egypt's Shoukry, UN representative discuss ways to achieve political settlement in Libya    Egypt's stocks start week in green, benchmark EGX 30 climbs 1.98%    National Bank of Egypt chairman named among Forbes Middle East's Top 100 CEOs list    Egypt's net foreign reserves rise to $40.2 billion at February-end:    JICA to continue supporting Egypt's educational reforms to boost women's empowerment, gender equality    Hassan Allam consortium wins contract to manage, operate Grand Egyptian Museum    Capital Intelligence confirms Egypt's sovereign ratings with stable outlook    Sisi approves amending law honoring martyrs, victims, missing, injured in terror attacks    Government inaugurates ICT projects in Kafr El-Sheikh    Saudi-led coalition destroys eight Houthi drones: Saudi TV    Train derails killing 1, injuring 40 in southern Pakistan    Egypt condemns latest terror atack in Somalia    Live score: Liverpool v Fulham (English Premier League)    Pope visits Iraq's war-ravaged north on last day of tour    Egypt detects 588 new coronavirus cases, 38 deaths on Saturday    Messi provides 2 assists for Barca ahead of Madrid derby    Nigeria's Iheanacho, Ghana's Amartey give Leicester win over Brighton    US envoy seeking support to shakeup Afghan peace process, warring parties object    Al-Sisi, Al-Burhan to intensify efforts towards reaching legally binding GERD agreement    UK calls on African countries to join UK-Egypt led Adaptation Action Coalition    Egypt's Shoukry, UN Secretary-General discuss Ethiopia's Nile dam developments    World Bank approves $440 million for enhancing Egypt's railways    Al-Sisi visits Sudan for first time after formation of new transitional government    Art House partners with Cultural Development Fund to present theatrical, musical shows    Egypt stresses necessity of launching 'serious' negotiation process to reach deal on GERD before flood season    Messi serves as bright spot in Barcelona's disastrous season    Zamalek ready with striking force against Esperance Tunis    Egypt clubs protest Football Association decision to cover costs of COVID-19 tests    Hassan Allam wins contract to manage, operate Grand Egyptian Museum    Sudan keen to enhance cooperation with Egypt: Sudanese FM Al-Mahdi    Egypt court upholds 3-year prison sentence for Mubarak-era Minister El-Feky    A Happy Purrfect Rescue Story of 4 Cats in Thailand    Egypt's Zamalek arrive in Tunisia to face Esperance in CAF Champions League    Winston Churchill's Moroccan landscape painting owned by Angelina Jolie sells for $11.5M    Orascom Construction to build Magdi Yacoub Global Heart Centre    Respect for diversity    Huawei launches HUAWEI FreeLace Pro in Egypt with extra-long battery life and top-grade noise cancellation    Enhanced Labs signs Mr. Olympia 2020 "Big Ramy" And His Trainer Dennis James    1st hours of registration for coronavirus vaccine seen 7,000 Egyptians signing up: ministry    King Tutankhamun funerary mask is must-see tourist icon: The Telegraph    Seasoned Egyptian screenwriter Wahid Hamed dies at 76    Coronavirus strikes Egypt's youth team as 17 players, coach test positive    Egypt, Ethiopia, Sudan to resume Nile dam talks today    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Oil prices supported by weaker dollar
Published in Amwal Al Ghad on 28 - 03 - 2017

Oil prices rose on Tuesday, supported by a weak dollar, but crude continued to be weighed down by surging U.S. production and uncertainty over whether an OPEC-led supply cut is big enough to rebalance the market.
Prices for front-month Brent crude futures, the international benchmark for oil, had gained 20 cents from their last close to $50.95 per barrel by 0320 GMT.
In the United States, West Texas Intermediate (WTI) crude futures were up 24 cents at $47.97 a barrel.
Traders said crude futures were receiving some support from a weak dollar.
The greenback has lost 2.9 percent in value against a basket of other leading currencies.
DXY since its March peak on doubts over U.S. President Donald Trump's ability to push through his economic agenda.
When the dollar weakens, many traders pull money from foreign exchange markets and put it into commodities futures such as gold or crude instead. A weaker dollar also makes oil cheaper for countries using other currencies, potentially spurring import demand.
"Crude prices tested the support at $50 per barrel for Brent and rebounded from there," said Sukrit Vijayakar, director of energy consultancy Trifecta.
Physical fundamentals remained weak, however, with soaring U.S. output undermining efforts led by the Organisation of the Petroleum Exporting Countries (OPEC) to cut production to rein in a global fuel supply overhang and prop up prices.
"We now forecast U.S. crude oil production to reach a multi-decade high by December, within sight of the all-time high reached in 1970," Barclays said in a note to clients.
U.S. crude oil output has already risen 8.3 percent since mid-2016 to 9.13 million barrels per day (bpd). Output briefly reached 9.7 million bpd in April 2015, highest since May 1971.
Soaring output and brimming inventories have made U.S. WTI crude much cheaper than international peer Brent, which is being supported above $50 per barrel by the OPEC-led production cut.
As a result, record amounts of U.S. crude oil have found their way to Asia and other destinations this year, and more is expected to be shipped out as traders take advantage of arbitrage opportunities by sending excess U.S. crude into regions where it can find buyers.
"The market still seems awash with crude," Trifecta's Vijayakar said.
Source: Reuters

Clic here to read the story from its source.