Oil higher on dollar weakness
Oil was higher in Asian trade today as the US currency weakened against the euro, boosting investor appetite for dollar-priced commodities including crude, analysts said.
Oil was higher in Asian trade today as the US currency weakened against the euro, boosting investor appetite for dollar-priced commodities including crude, analysts said.
New York's main contract, light sweet crude for July delivery, gained 29 cents to USD 100.52 a barrel and Brent North Sea crude for July delivery was 20 cents higher at USD115.25."It's up a little bit and is consistent with the movement of the dollar versus the euro," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.In early morning trade, the euro was changing hands at USD 1.4152 from USD 1.4141 in late New York trade Thursday. A weaker US unit makes it cheaper for holders of other currencies to invest in crude oil futures and oil dollar-priced commodities.Shum said crude prices were expected to stay above USD 100 ahead of the Memorial Day extended weekend, which also marks the start of the US summer driving season. Gasoline demand in the world's biggest oil consumer is expected to pick up as many Americans take to the road for their holidays.
"The US Memorial Day also marks the beginning of the summer driving season," Shum told AFP."So that may help support pricing even though the recent economic data out of the US has been on the weak side," he said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
