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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.