Oil futures have returned to positive territory, supported by the fall in the US currency and the statements of a number of Fed officials.
The US Dollar Index, showing the US dollar against a basket of six major currencies, was down 0.1%, returning to a session low. As oil prices are tied to the dollar, a weaker dollar makes oil cheaper for holders of foreign currencies.
Investors also drew attention to the monthly report of OPEC. It was reported that in 2016, production in the United States, Russia, Norway and several other countries will be approximately 190,000 barrels per day higher than expected. This factor may indicate that oil production outside OPEC was stable, despite low oil prices. As expected by the cartel, by 2017 oil supply will exceed demand by about 760,000 barrels a day, which is more than three times higher than the previous forecast.
Speculative oil traders were also less confident in the high oil prices – data Commodity Futures Trading Commission US showed that net long positions fell in the second week in a row.
According to Baker Huges report on the results ended Sept. 9, the number of US rigs increased by 11 units, or 2.21%, to 508 units. The number of gas-producing plants has increased by 4 points or 4.54% and amounted to 92 units.
The cost of the October futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 46.37 dollars per barrel on the New York Mercantile Exchange.
October futures price for North Sea petroleum mix of Brent crude rose to 48.41 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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