Oil markets are firm pushed by the weaker dollar and a healthy economic growth

Oil prices are in calm waters finding support from the healthy economic growth and expectations that a weaker dollar could result to a spur in fuel demand.

Despite this, crude prices remain well below the recent highs mostly due to signals that the oversupply may still linger which includes the rise in U.S. inventories and ample physical flows globally.

The U.S. West Texas Intermediate (WTI) crude futures are found at $59.17 per barrel, which is down by 2 cent from their previous close. WTI was trading above $65 early this month.

Brent Crude futures were found trading at $62.77 per barrel, which was up by 5 cents from their previous close which is was trading at $70 per barrel earlier for the month of February.

The ongoing weakness in the U.S. dollar which could potentially affect the demand from countries that are using other currencies at home, as well a healthy economic growth helped in pushing the oil markets.

The American Petroleum Institute states that on Tuesday that the U.S. crude inventories was up by 3.9 million barrels in the week to February 9 to 422.4 million.

The International Energy Agency said on Tuesday oil demand would grow by 1.4 million bpd in 2018, but added output growth could outpace demand.

The physical market is reacting, with prices for the regional crude from the North Sea, Russia, and the United States, and the Middle East where supplies are getting cheaper as producers struggle to remain competitive amid ample supplies.


Leave a Reply

Your email address will not be published.