Investing.com - Financial Markets Worldwide

Weaker dollar, possible producer action buoy oil prices after 4% slump

Published 08/08/2019, 02:01
Updated 08/08/2019, 02:10
© Reuters.
LCO
-
CL
-

* Brent, WTI rebound more than $1/bbl
* Weaker U.S. dollar, talk of more producer action lend
support
* U.S. crude stockpiles unexpectedly rose last week -EIA

By Florence Tan
SINGAPORE, Aug 8 (Reuters) - Oil futures jumped more than $1
a barrel on Thursday amid a weaker dollar, recovering ground
after concerns that a global economic slowdown would hurt crude
demand sparked losses of over 4% in the previous session.
Brent crude LCOc1 had rebounded to $57.52 a barrel, up
$1.29, or 2.29%, from its last close by 0032 GMT, while U.S.
crude futures CLc1 jumped $1.30, or 2.54%, to $52.39 a barrel.
Both contracts hit their lowest levels since January on
Wednesday after a surprise build in U.S. crude inventories added
to worries that the brewing Sino-U.S. trade war could further
dampen demand-growth this year. EIA/S "The U.S. dollar is losing some steam and easing some of the
pressure on oil prices," said Alfonso Esparza, a Toronto-based
senior market analyst at Oanda.
Talk of more action to prop up oil markets from Saudi Arabia
and other producers in the Organization of the Petroleum
Exporting Countries (OPEC) also supported crude prices.
Bloomberg in a report on Wednesday cited a Saudi official
saying that the world's top exporter is in talks with other
producers to take action to halt the oil price slide.
"Trade war rhetoric will continue to guide markets, but the
comments from Saudi Arabia could lead to unprecedented action to
stabilise prices," Esparza said.
"It is hard to imagine what that would look like given how
hard it was to get the OPEC+ to agree to the production limit
agreement, but given the potential free fall from crude if the
trade war continues, no option is off the table."

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.