Oil price increase amid weakening US dollar

Benchmark oil prices rose in the course of trading on Tuesday amid a weakening US dollar, which is driving demand for dollar-denominated assets, Interfax reports.

The cost of June oil futures for Brent on the London ICE Futures exchange by 8:18 a.m. Kyiv time on Tuesday amounted to $67.75 per barrel, which is $0.7 (1.04%) higher than the price at the close of the previous session. As a result of trading on Monday, these contracts increased by $0.28 (0.4%) to $67.05 per barrel.

The price of May futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) by this time reached $64 per barrel, which is $0.62 (0.98%) higher than the level at the close of the previous session. On Monday, the value of these contracts increased by $0.25 (0.4%) to $63.38 per barrel.

May WTI crude oil futures expire at the close of trading on Tuesday. The more actively traded June contract in the course of trading adds $0.61 (0.96%) in price, trading at about $64.04 per barrel.

S&P Global Platts also notes the optimism of investors due to the improved forecasts of the epidemiological situation in Europe, which, however, is constrained by the high incidence in India.

"The energy market is watching India closely as the current surge (morbidity – ed.) forces refiners to suspend production and raises concerns about a potential new strain," said Edward Moya, senior market analyst at Oanda.

Meanwhile, Arabian Gulf Oil Co. (Agaco), owned by Libya's National Oil Corporation (NOC), has suspended production at its oil fields due to government delays in payments to the company since September, S&P Global Platts reported.

As reported, Naftogaz increased production at facilities in the Western Desert of Egypt.

Tags: oil, USA, Asia, coronavirus, Oil refinery plant, price, petroleum products, oil deliveries, gasoline, diesel

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