Commodity News
HeadLine : Oil rises on weaker dollar, but virus woes and U.S.-China tensions weigh
Date : Jul 24 2020
The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually spurs buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies. Brent crude rose 15 cents, or 0.4%, to $43.46 a barrel, and U.S. West Texas Intermediate (WTI) crude rose by 12 cents, or 0.3%, to $41.19. The number of Americans filing for unemployment benefits unexpectedly rose to 1.416 million last week for the first time in nearly four months, suggesting U.S. economic recovery is stalling amid a resurgence in COVID-19 cases. While the rise in infections has fanned fears of renewed government lockdowns, worries that oil demand could be hit have been exacerbated by tensions between the United States and China - the world’s top two oil consumers. Barclays Commodities Research has said oil prices could see a correction in the near term if a recovery in fuel demand slows further, especially in the United States. The bank lowered its oil market surplus forecast for 2020 to an average 2.5 million barrels-per-day (bpd), from 3.5 million bpd previously.

Source : Rueters
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