USOUSD

Terry_8

Trader
Mar 23, 2020
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CRUDE OIL SNAPS 4-DAYS LOSING STREAK AMID BROAD BASED WEAKNESS IN DOLLAR

Crude oil snapped its four days losing streak amid the broad-based weakness in dollar. The greenback dipped to a more than 2-year low level in the wake of policy shift on inflation outlined by Fed chief last week. The weakness in dollar underpins the commodities that are priced in Dollar and make it more attractive to global buyers. Moreover, oil prices gained support in response to the signs of sustained damage from Hurricane on the Strategic reserves of Gulf coast. This was after Energy companies in Mexico struggled to restore platform and refineries despite continued efforts, which could lead to lower output and exports in the coming period. As of now, US WTI is trading up by 1.32% at $43.12 level, while Brent Crude is trading higher by 0.55% at $45.82 per barrel. Overall, both contracts managed to register their fourth straight monthly gains of 5.19% and 4.95% respectively.
Talking about the previous session, crude oil prices slipped by nearly 1.02% to $42.46 per barrel as global demand struggled to reach the pre-coronavirus levels in a well-supplied market. The concern of rising COVID-19 cases worldwide continues to raise questions over the sustenance of the recent price recovery and concerns over the re-imposition of lockdowns. In addition to this, according to latest data by Refinitiv and Vortexa, China’s crude imports are set to fall for the first time in four months as record volumes of crude are stored in the floating vessels of the world’s biggest importer.
Up ahead, investors will remain watchful over coronavirus headlines to ascertain the market direction.

Source: www.facebook.com/fxviewdotcom/posts/213970620145312
 

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