Oil prices are rising amid statements of the chairwoman of the Federal Reserve Janet Yellen. During his speech oil prices fell, and then began to grow due to the weakening dollar. Yellen expressed the view that interest rates may be increased in the following weeks or months, but this evaluation did not differ much from what traders had expected, said Bart Melek of TD Securities.
“The Fed did not say that is necessarily raise rates in September,” – says Melek. According to him, there was a correction on oil after an up move, but then it ended.
Rising interest rates in the US could strengthen the dollar, which makes oil more expensive for holders of other currencies. The dollar index recently fell by 0.5%.
“It’s all about the dollar,” – said Mark Waggoner, president of Excel Futures. He also drew attention to the low volume of transactions on Yellen’s speech and a high volume after the speech. “Traders do not like uncertainty. They listened, and now want to return to the market.”, – he added.
The Bank of America Merrill Lynch keeps Brent oil price forecast at $ 61 a barrel as the emerging shortage of supply is accompanied by “a moderate rise in global demand.” The bank expects that the growth in global oil demand next year will amount to 1.2 million barrels per day from 1.4 million barrels per day this year and 1.6 million barrels last year.
The cost of the October futures for WTI rose to 48.46 dollars per barrel.
October futures for Brent crude rose to 50.76 dollars a barrel on the London Stock Exchange ICE Futures Europe.