Oil Prices Increase On Falling US Dollar, Erasing Overnight Losses

Oil Prices Increase On Falling US Dollar.

Duel to Covid-19 pandemic in the world, every country is facing a tour task as the economy almost crumble.

Oil prices rise on Tuesday, erasing losses as the investors moved into risk assets and away from the safe haven US dollar, which tumbled to multi year lows.

Brent crude futures climbed 49 cents or 1.1 per cent to $45.77 a barrel at 0406 GMT. The U.S. West Texas Intermediate (WTI) crude futures rose 37 cents or 0.9 per cent to $42.98 a barrel.

The benchmark worries about oil oversupply as the contracts fell around one per cent on Monday.

Covid-19 levels stuck the global demand, while the US dollar was last down 0.04 per cent 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 (the policy shift) 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.

However, the market remains focused on the stalled recovery in fuel demand as countries keep battling with the coronavirus pandemic with lockdown, analysts said.

But this has caused plenty of uncertainty about whether demand for transportation fuels will return to normal.

ANZ research said, stockpile data from the American Petroleum Institute industry group, as poll found analysts expect U.S crude stocks fell by about two million barrels in the week to August 28.

While Gasoline inventories are seen falling by 3.6 million barrels, distillate inventories, which also include diesel and heating oil are expected to drop by 1.5 million barrels, all this analysts polled by Reuters estimated.

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