Brent inches higher as USD weakens
The front-month ICE Brent contract has gained by $0.10/bbl on the day, to trade at $63.68/bbl at 09.00 GMT.
IMAGE: An oil pumpjack pictured at dusk. Getty Images
Upward pressure:
Brent crude’s price has inched higher as a weaker US dollar provided some support to the broader commodities complex, according to two analysts from ING Bank.
“Commodities performed relatively well… as a weaker USD proved supportive,” ING Bank’s analysts said.
The gains come as trade tensions between the US and Europe intensify, after President Donald Trump called for the “complete and total purchase” of Greenland.
Besides, the sustained strength in ICE Brent time spreads will lend further support to prices, as it points to tightening conditions in the spot physical market, the two analysts added.
Downward pressure:
The total number of rigs drilling for crude oil in the US rose by one to 410 units last week, according to Baker Hughes.
The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening, or expected to happen, in the shale sector.
In an oversupplied market, any signal of increased future supply can put downward pressure on Brent’s price.
By Aparupa Mazumder
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