Home/Commodities/FX/Newsfeed

Oil Rises on Monday as Non-OPEC Supplies Shrink

Share Print 0

Oil prices rose on Monday, extending recent gains, building on three weeks of higher prices and reversing earlier losses from traders taking profits.

Front-month Brent crude LCOc1 was trading at $45.45 per barrel at 1302 GMT (8:02 a.m. ET), up 34 cents from its last settlement.

U.S. West Texas Intermediate (WTI) futures CLc1 were up 17 cents at $43.90 a barrel.

ABN Amro chief energy economist Hans van Cleef said that prices were reflecting the anticipation of the rebalancing of supply and demand.

“Meaning that demand will continue to rise and supply will be hit, especially non-OPEC,” van Cleef said.

ABN Amro forecasts oil prices of $55 per barrel by year end.

Market data shows that the amount of open positions betting on rising WTI prices 1067651MLNG rose to levels last seen in June 2015 last week, while bets taken out in expectation of falling prices 1067651MSHT fell close to 2016 lows.

Traders also said oil fell on a jump in the dollar on Friday .DXY against a basket of other leading currencies on expectations that Japan will further extend its aggressive monetary easing through negative interest rates.

A stronger dollar, in which oil is traded, makes fuel imports for countries using other currencies more expensive, potentially hitting demand.

The dollar index .DXY was trading 0.3 percent lower on Monday.

via Reuters

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

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

@alfonso_forex

,
Back to Top