25 Mar 2015
Oil prices getting a boost from the weak US dollar
FXStreet (Mumbai) - Crude oil prices at both the sides of the Atlantic received a boost from the falling US dollar on Wednesday ahead of the weekly supply report in the US.
WTI Crude futures for May delivery trade 1.6% higher at USD 48.27/barrel, while the Brent futures for May delivery trade 1.91% higher at USD 56.12/barrel. The crude prices steadily rose, tracking the weakness in the USD since the early European session.
The gains were extended further after the US Commerce Department reported an unexpected drop in the Durable goods orders in February. Usually a weak durable goods report could have triggered weakness in the oil prices. However, markets seem fixated on the inverse relationship between the USD and Crude prices. Consequently, Crude prices rose further, tracking weakness in the USD post durable goods report.
Markets now await a weekly supply report from the US Energy Information Administration (EIA). Analysts forecast a gain of 5.6 million barrels in inventories during the last week. American Petroleum Institute, an industry group, late Tuesday said its data for last week showed a 4.8 million barrel gain in crude-oil supplies.
WTI Crude futures for May delivery trade 1.6% higher at USD 48.27/barrel, while the Brent futures for May delivery trade 1.91% higher at USD 56.12/barrel. The crude prices steadily rose, tracking the weakness in the USD since the early European session.
The gains were extended further after the US Commerce Department reported an unexpected drop in the Durable goods orders in February. Usually a weak durable goods report could have triggered weakness in the oil prices. However, markets seem fixated on the inverse relationship between the USD and Crude prices. Consequently, Crude prices rose further, tracking weakness in the USD post durable goods report.
Markets now await a weekly supply report from the US Energy Information Administration (EIA). Analysts forecast a gain of 5.6 million barrels in inventories during the last week. American Petroleum Institute, an industry group, late Tuesday said its data for last week showed a 4.8 million barrel gain in crude-oil supplies.