WTI Crude Oil Gains From Weakness in US Dollar
WTI crude oil prices are climbing higher and making up for losses suffered during overnight trading as a result of weakness in the US dollar
Early on Tuesday, WTI crude oil prices are climbing higher and making up for losses suffered during overnight trading as a result of weakness in the US dollar and an improvement in the risk appetite in markets. At the time of writing, WTI crude oil is trading at around $42.99 per barrel.
Worries about a supply glut in markets even as demand remains weak due to the ongoing coronavirus pandemic had caused crude oil to lose around 1% of its value during the previous session. However, with the US dollar falling to an over two-year low, WTI oil becomes more affordable for holders of other currencies, helping support its prices for now.
Despite this sentiment, bullish moves in oil remain limited as the focus stays on the economic fallout from the pandemic all over the world. Even as countries emerge from lockdowns, a continued increase in cases is driving additional lockdowns in some regions, further delaying economic recovery and a pick-up in oil demand.
Meanwhile, WTI crude oil prices are also enjoying some support in early trading after a recent Reuters poll forecasts a decline in US crude inventories over the previous week. According to economists, US crude stockpiles are expected to have reduced by 2 million barrels during last week.
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