Oil Lower on Dollar Rebound

Energy prices are lower on Monday as the US dollar rebounds after the comments from the US Attorney General removed some uncertainty surrounding the White House. Oil rose after a surprise 9.6 million drawdown and the efforts of the OPEC+ to keep production lower.

West Texas Intermediate graph

The cancellation of the April ministerial meeting pushed the focus to the end of the agreement in June, when a probable extension could be announced as the de facto leaders Saudi Arabia and Russia have hinted that the deal could still be in place until the end of the year.

The demand for energy continues to gather steam, even as global growth forecasts have been downgraded as mixed economic indicators and trade disputes impact investor confidence.

Brent crude graph

Oil markets continue to seesaw between the two main factors driving prices: US production and the OPEC+ agreement to cut output with disruptions such as the shock US drawdown tipping the scale in favour of a rise in prices.

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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