Published: Wed, February 21, 2018
Sci-tech | By Jackie Newman

Oil Buoyed by Weaker Dollar and Stronger Equities

Oil Buoyed by Weaker Dollar and Stronger Equities

"We now see an excellent opportunity for investors to enter the market".

The most active gold futures contract on the Comex market in NY touched a high of $1,358.60 an ounce in midday trade, up more than 2pc or almost $30 an ounce compared to Tuesday's settlement after inflation data in the USA came in higher than expectations.

OPEC Secretary General Mohammad Barkindo, also on Monday, announced that OPEC's compliance with the imposed production cuts is standing at 133 percent, up from 107 percent a year ago.

Markets now eagerly await the US API crude stockpiles report for fresh insights on the US supply-side scenario, which will shape up the next direction for the prices.

Meanwhile, the restoration of full capacity from the Forties pipeline in the North Sea - closed for several weeks for repairs after a crack was discovered in December - has eased concerns over the supply of Brent crude.

Crude climbed above $62/bbl for the first time in more than a week as an alliance of some of the world's largest oil producers signaled further cooperation to tighten supplies through the end of the year.

Traders will also continue to monitor the OPEC-led deal to cut production. Prices rallied to a high of $62.74 a barrel early in the session, the highest since February 7. Slower domestic demand, along with growth in natural gas, oil, and oil product production will drive the transformation, the EIA said.

US women's hockey team breezes past Finland, will play for gold
Combined with how they've been shooting the puck, that's why the Americans are focused on converting within 15 feet of the net. But Stauber, the team's coach, and his players are not blind to reality. "I keep sort of pinching myself, " Knight said.

US West Texas Intermediate crude for March delivery was up 5 cents, or 0.1 per cent, at $61.73 a barrel by 2348 GMT, after rising 4.2 per cent last week. Transactions on Monday will be booked Tuesday for settlement because of the U.S. Presidents' Day holiday.

On the other hand, benchmark Brent crude futures was down by 0.7 percent to $65.19 a barrel, after marking a one-week peak of $65.90 on Monday. Prices added 83 cents to close at US$65.67 yesterday.

WTI was at a premium of 36 cents a barrel to the Dubai oil yesterday, compared with an average discount of about US$2 over 2017.

The American Petroleum Institute said last Tuesday that United States crude inventories rose by 3.9m barrels in the week to Feb 9, to 422.4m.

WTI has gained more than 8 per cent since the end of November, when the Organisation of Petroleum Exporting Countries and its allies agreed to extend an output-curb deal until the end of this year.

Suhail al-Mazroui, energy minister for the United Arab Emirates, told media of the alliance formation, saying OPEC was urging its members to build oil capacity buffers to temper any wild upswings in price due to the weak US dollar this year.

"The fundamental landscape is strong", said Mark Keenan, global commodities strategist and head of Asia-Pacific research at Societe Generale SA in Singapore.

Like this: