July 24, 2024

Oil closes higher on weaker dollar, US commodities and skepticism about OPEC +

2 min read
Gold closes high, cautiously following data from China and the US
Gold closes high, cautiously following data from China and the US

Oil futures contracts ended higher on Wednesday, the 12th, driven by weekly depreciation in U.S. inventories and, in addition to the depreciation of the dollar, commodities quoted in the US currency are cheaper for holders of other currencies. The productivity of petroleum exporting countries and allies (OPEC +) is another aspect that is being looked at by investors.

WTI crude for February was up 1.75% ($ 1.42) at $ 82.64 a barrel on the New York Mercantile Exchange (Nymex), Brent was up 1.13% (US $ 0.95) in March and $ 84 a barrel at the Intercontinental Exchange (ICE). )

TD Securities points to extended gains in oil after US stocks fell for the sixth week in a row. The Department of Energy (DoE) said on Wednesday that cargo fell by 4.553 million barrels in the week ended January 7, signaling the world’s largest consumer demand. Analysts asked The Wall Street Journal Predicts a decline of 2.1 million. However, the capitalist economy believes that demand in the country will be under pressure as the Govt-19 cases increase and economic growth slows.

DT Securities also points out that a weaker dollar and sustained risk appetite helped support oil prices. According to the Investment Bank, the market is highly priced at supply interruptions in major producing countries. “Many are concerned that OPEC + does not have the capacity to deliver on its promise to balance the market by 2022.”

As the world explores in depth in January, TD Securities estimates that “when La Nina is at risk of freezing cold than usual due to the weather, any significant increase in winter fuel demand will lead to global deficits and demand shortcoming in the coming months.” “We would not be surprised to see another $ 3-5 in the not-too-distant future of WTI and Brent benchmark crude,” he plans.

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