Oil Higher on Weaker Dollar

Oil prices rose on Friday, recouping some of the previous session’s losses, as a weaker dollar encouraged buying but investors remained cautious after Russian production figures showed weak compliance with a global deal to cut output.

Global benchmark Brent LCOc1 was up 36 cents at $55.44 a barrel at 1456 GMT, recovering some of Thursday’s losses that amounted to more than 2 percent.

WTI futures CLc1 traded at $52.97 a barrel, up 36 cents on the previous close.



“The market is range bound, therefore there is nothing surprising in seeing fresh buying after a big sell-off and of course the slightly weaker dollar is also helping oil recover,” said Tamas Varga, senior analyst at London brokerage PVM Oil Associates.

The dollar .DXY slipped from a seven-week high on Friday ahead of a key speech by Federal Reserve chief Janet Yellen.[USD/]

A weaker greenback makes it more attractive to buy dollar-denominated currencies like oil futures.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza