Oil Prices Rise Amidst Crumbling US Dollar

LAGOS  SEPTEMBER 2ND (NEWSRANGERS)-Oil prices recovered on Tuesday, erasing overnight losses, as investors moved into risk assets and away from the safe-haven U.S. dollar, which tumbled to multi-year lows.

Brent crude futures climbed 49 cents or 1.1% to $45.77 a barrel at 0406 GMT while the U.S. West Texas Intermediate (WTI) crude futures rose 37 cents or 0.9% to $42.98 a barrel. Both benchmark contracts fell around one percent on Monday on worries about oil oversupply, with global demand stuck below pre-COVID levels.

The U.S. dollar was last down 0.04% at 92.146 against a basket of currencies, after hitting its lowest since May 2018 in the wake of the U.S. Federal Reserve’s policy shift on inflation announced last week.

“It really cements the fact that you’re looking at negative real rates for the U.S. which will not be great for the U.S. dollar. That’s good for commodities,’’ said Louis Crous, Chief Investment Officer at BetaShares, an Australian exchange-traded funds provider.

Oil prices recovered on Tuesday, erasing overnight losses, as investors moved into risk assets and away from the safe-haven U.S. dollar, which tumbled to multi-year lows.

Brent crude futures climbed 49 cents or 1.1% to $45.77 a barrel at 0406 GMT while the U.S. West Texas Intermediate (WTI) crude futures rose 37 cents or 0.9% to $42.98 a barrel. Both benchmark contracts fell around one percent on Monday on worries about oil oversupply, with global demand stuck below pre-COVID levels.

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Posted by on Sep 2 2020. Filed under Business, National. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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