Oil rises as U.S. supplies tighten and dollar weakens
Oil prices rose on Thursday, with global benchmark Brent topping $75 a barrel, as supplies in the United States further tightened after shrinking to the smallest levels since January 2020.
Brent crude oil futures advanced $1.31, or 1.75%, to settle at $76.05 per barrel. U.S. West Texas Intermediate (WTI) crude oil futures settled $1.23, or 1.7%, higher at $73.62 per barrel.
In June, Brent topped $75 a barrel for the first time in more than two years, before falling back sharply this month on fears about the rapid spread of the Delta variant of coronavirus and a compromise deal by leading oil producers to increase supply.
The U.S. economic recovery is still on track despite the rise in coronavirus infections, the U.S. Federal Reserve said on Wednesday in a policy statement that flagged ongoing talks around the eventual withdrawal of monetary policy support.
The dollar languished a day after the Federal Reserve’s remarks that it has not yet set a time to start tapering its bond purchases.
The dollar index fell 0.41% to 91.882, a level last seen on June 29. A sluggish dollar hoisted the euro up 0.39% to $1.1888, its highest in more than 3 weeks.
A weaker dollar can boost investor demand for dollar-denominated commodities, including crude oil.
Reference: CNBC
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