[ad_1]
Oil futures rose early Monday, on track for a three-day winning streak, as the U.S. dollar continued to pull back from multidecade highs and investors turn their attention to supply issues.
Price action
-
West Texas Intermediate crude for October delivery
CL.1,
+1.05% CLV22,
+1.05%
rose 74 cents, or 0.9%, to $87.53 a barrel on the New York Mercantile Exchange. -
November Brent crude
BRN00,
+1.18% BRNX22,
+1.18% ,
the global benchmark, was up 90 cents, or 1%, at $93.74 a barrel on ICE Futures Europe. -
Back on Nymex, October gasoline
RBV22,
+0.69%
was up 0.7% at $2.451 a gallon, while October heating oil
HOV22,
+1.48%
rose 1.2% to $3.623 a gallon. -
October natural gas
NGV22,
-1.21%
gained 0.7% to $8.055 per million British thermal units.
Market drivers
The ICE U.S. Dollar Index
DXY,
was down 0.8%, extending a pullback from a 20-year high as the euro
EURUSD,
bounced. A stronger dollar had been blamed partly for a slide that saw crude last week drop to its lowest since January, while fears over the outlook for demand also weighed on the complex as investors focused on aggressive monetary policy tightening by the Federal Reserve and other major central banks.
A stronger dollar is seen as a weight on commodities priced in the unit, making them more expensive to users of other currencies.
Developments around Iran nuclear talks may also be supportive, analysts said. France, Germany and Britain on Saturday said they had “serious doubts” about Tehran’s commitment to reviving the pact due to its insistence on a closure of a probe by the UN’s nuclear watchdog into traces of uranium at three sites, according to reports,
Iran called the joint statement “regrettable.”
Warnings by the Organization of the Petroleum Exporting Countries and their allies — a group known as OPEC+ — about volatile price action and the disconnect with fundamentals might also be a factor in the gains, said Craig Erlam, senior market analyst at Oanda, in a note.
OPEC+ earlier this month agreed to cut production by 100,000 barrels a day in October.
“The group sent a warning shot earlier this month and may be tempted to send another prior to the October meeting. The recovery in the price may be supported by that, alongside a broader improvement in risk appetite in the markets and a weaker dollar,” he said.
[ad_2]
Source link
