Oil advances as dollar slumps, but pandemic surge weighs
Oil prices edged higher on Monday, supported by a weaker U.S. dollar but concerns about the impact on demand from rising coronavirus cases in India and other countries capped gains.
Brent crude settled 0.42% higher at $67.05 per barrel, after rising 6% last week. West Texas Intermediate (WTI) U.S. oil advanced 0.4% to settle at $63.38 a barrel, having gained 6.4% last week.
The U.S. dollar traded at a six-week low versus major peers on Monday, with Treasury yields hovering near their weakest in five weeks.
A weaker dollar makes oil cheaper for holders of other currencies. However, COVID-19 cases have surged in India, the world’s third biggest oil importer and consumer, dampening optimism for a sustained global recovery in demand.
JP Morgan now expects Brent prices to break the $70 mark by May, compared with September in its previous forecast, the bank said in a recent note. It still expects them to finish the year at a similar level of about $74.
Reference: CNBC
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