WTI Crude Oil Gains From Weakness in US Dollar - Forex News by FX Leaders
WTI Crude Oil Gains From Weakness in US Dollar

WTI Crude Oil Gains From Weakness in US Dollar

Posted Tuesday, September 1, 2020 by
Arslan Butt • 1 min read

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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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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