Skip to main content

Oil prices boosted by dollar slump

Oil prices pushed higher Monday thanks to a softer dollar after last week’s disappointing US jobs report, but gains were limited as producers increased their rig count.

The US Labor Department said Friday that just 38,000 new jobs were created last month, a quarter of what was expected.

With a US interest rate rise not now seen before September at the earliest, the dollar tumbled — making oil cheaper for anyone buying it with other currencies.

At about 0640 GMT, US benchmark West Texas Intermediate was up 42 cents, or 0.86 percent, at $49.04, while Brent gained 36 cents, or 0.73 percent, to $50.00.

Oil is up about 85 percent from the near 13-year lows touched at the start of the year, and key producer Abu Dhabi said the supply glut that had hammered prices was easing quicker than expected.

Ali Majed Al Mansoori, chairman of Abu Dhabi Department of Economic Development, also predicted prices could rise to as much as $60 this year.

However, analysts said gains would meet resistance as current prices are making it viable for producers to bring rigs back online.

On Friday the Baker Hughes weekly North American rig count showed an increase of nine onshore oil drilling platforms in the US.

IG Markets analyst Bernard Aw told AFP: “The move in oil prices is not in proportion to the dollar retreat.

“One would have expected oil prices to push much higher than what we’re seeing… traders might be waiting for news more related to oil itself.”

Crude has managed to hold up as the refusal last week by export cartel OPEC to agree output limits was offset by another fall in US stockpiles, which fuelled hopes of a recovery in demand in the world’s top oil consumer.

Disruptions to supplies from Nigeria and Canada also provided support.

Labels:

Comments

Post a Comment

Popular posts from this blog

Houthis Claim Attack on Central Israel in Response to Gaza ‘Massacres’

The ongoing conflict between Israel and Hamas has taken a concerning regional turn as the Houthi rebels in Yemen claimed responsibility for an attack on central Israel. The group announced this as part of their escalating response to what they describe as "massacres" in Gaza amid the Israeli military’s operations in the strip. Details of the Attack The Houthis, a Shiite militant group with ties to Iran, declared that they launched missile and drone strikes targeting Israel. While the exact impact of these attacks remains unclear, reports suggest that Israel’s defense systems intercepted several threats over its airspace. This marks a significant escalation as the Houthis widen their involvement in the conflict beyond their typical operations within Yemen and neighboring Saudi Arabia. The Houthis’ Justification In their statement, the Houthis framed the attack as retaliation for Israel’s military actions in Gaza, which they characterized as indiscriminate bombings resultin...
Post a Comment
Read more

Fire: UniJos Senate convenes emergency meeting on Monday

Fire at the University of Jos Library University of Jos is to convene an emergency senate meeting on Monday to review the level of damage done to the institution by the Saturday night inferno. The Vice Chancellor, Prof. Sebastian Maimako, disclosed this on Sunday after inspecting areas affected by the incident. The fire, which lasted for more than six hours, destroyed the Library Complex that equally houses the faculties of management and social sciences. The fire also destroyed examination scripts, books and very crucial materials. Consequently, the vice-chancellor said “the Senate will meet tomorrow (Monday) to take a decision about the unmarked examination scripts that were burnt.” On the cause of the inferno, Maimako said investigation had commenced, adding that “nothing has been confirmed yet. We are still investigating.” The vice chancellor said the school was already working with federal authorities toward establishing a main fire station since the mini fire station in t...
Post a Comment
Read more

NDLEA arrests 252 suspects, seizes 3,073 kg Indian hemp

NDLEA operatives The NDLEA in Niger on Monday said that it had arrested 252 suspects and seized 3,073.9 kilogramme of Indian hemp(cannabis sativa) in the state. The NDLEA Commander in the state, Mr Joseph Iweajunwa, who disclosed this in Minna, said that the operations were carried out between January and September. “Our operations in Niger State from January to September 2016 led to the arrest of 252 suspects and seizure of 3,073.997 kilogramme of cannabis sativa,’’ he said. Iweajunwa said that within the period, the agency also seized 1, 530 litres of liquid drugs, especially cough syrup with codeine. He said the NDLEA also counselled and rehabilitated 90 drug addicts in the state within the period under review. The agency, he added, secured convictions of only nine of the suspects because the judge at the Federal High Court, Minna, went on leave. “ Now that the judge has resumed more suspects will be tried,’’ he said. He advised motorists, especially commercial vehicle dri...
Post a Comment
Read more