Oil prices were due to a weaker dollar, but the increasing Oil rigs in the U.S. slows down progress

Oil prices leg up

 

Oil prices in the market was found in better positions due to weak performance of the Dollar, but  the continuous increase in U.S. drilling have slowed down the improvement of oil prices as activities triggered worries that a global supply glut would persist despite the efforts by some producers to stop the global oversupply.

The U.S. Dollar index remained in the bear on today against a basket of major currencies amid fading expectations interest hike from the Federal Reserve that is supposed to happen later this year. A weaker dollar results to cheaper oil for countries using other currencies.

Though, oil prices have seen a modest increase and was back from a 10-month plunge, oil prices are still down by 13 percent since the Organization of the Petroleum Exporting Countries (OPEC) and other producers have agreed to extend the previous agreement to reduce output by 1.8 million barrels per day until next year.

Crude Supplies in the United States, is not a part of the OPEC agreement to cut oil output thus dampening the impact of the supply curbs.

Brent Crude futures were up by 24 cents or 0.53 percent and was sold at $45.78 per barrel while U.S. West Texas Intermediate crude futures have seen an increase of 21 cents an equal to 0.49 percent and was being sold at $43.22 per barrel.

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