WTI Crude Prices Continue to Climb as Dollar Falls
Jan, 26th 15:39
The crude Oil price rally continued after earlier falls on Friday as ongoing weakness in the U.S. dollar was seen supporting fuel consumption.
Brent crude futures were at $70.53 per barrel at 11:31 am GMT, up 0.16 percent from their last close, after dropping as low as $70.07 earlier in the day. U.S. West Texas Intermediate (WTI) crude futures were at $65.67 a barrel, up 0.24 percent from their previous close.
Crude oil futures have received support from a weakening dollar, which on Friday hit fresh 3 year lows against a basket of other leading currencies.
“The weakening of the U.S. dollar against a basket of global currencies has positioned 2018 to lead off with strong levels of oil demand,” said BMI Research.
“Global oil stocks rose overall in the week ending Jan. 19, as both crude and product stocks saw small builds,” U.S. bank Morgan Stanley said.
On the supply side, U.S. oil production is expected to hit 10 million bpd soon, after reaching 9.88 million bpd last week. Output has grown by more than 17 percent since mid-2016 and is now on par with top exporter Saudi Arabia’s.
On the technical charts, WTI crude is trading near the upper band of the Bollinger bands and in the positive zone. The market is above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 74.73 and the MACD is above the signal line.
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