Monday, September 24, 2018 12:23:41 PM - Markets open
VN-INDEX 1,009.90 +6.93/+0.69%
HNX-INDEX 115.54 -0.26/-0.22%
UPCOM-INDEX 53.45 -0.04/-0.08%
Weaker dollar lifts oil futures, but soaring U.S. output weighs
Source: Reuters - 3/28/2017 8:43:59 AM
 (0 ratings. You must sign in to rate.)
Oil prices edged up on Tuesday on a weaker dollar, but crude continued to be weighed down by surging U.S. production and uncertainty over whether an OPEC-led supply cut is big enough to rebalance the market.

Prices for front-month Brent crude futures LCOc1, the international benchmark for oil, had risen 15 cents from their last close to $50.90 per barrel by 0120 GMT.

In the United States, West Texas Intermediate (WTI) crude futures CLc1 were up 19 cents at $47.92 a barrel.

Traders said that crude futures were receiving some support from a weak dollar.

The greenback has lost 2.9 percent in value against a basket of other leading currencies .DXY since its March peak on doubts over U.S. President Donald Trump's policy making abilities.

When the dollar weakens, many futures traders pull out money from foreign exchange markets and put it into commodities futures like gold or crude futures instead.

A weaker dollar also makes oil imports cheaper for countries using other currencies, potentially spurring demand.

While there was some support for crude from financial markets, physical fundamentals remained weak, especially due to soaring U.S. output that is undermining efforts lead by Organization of the Petroleum Exporting Countries (OPEC) to cut production in order to rein in a global fuel supply overhang and prop up prices.

"We now forecast U.S. crude oil production to reach a multi-decade high by December, within sights of the all-time high reached in 1970," Barclays bank said in a note to clients.

U.S. crude oil production has already risen 8.3 percent since mid-2016 to 9.13 million barrels per day (bpd). Output briefly reached 9.7 million bpd in April 2015, it highest since May 1971.

Soaring output and brimming inventories have made U.S. WTI crude much cheaper than its international peer, Brent, which is receiving support above $50 per barrel by the OPEC-led production cut.

As a result, record amounts of U.S. crude oil have found their way to Asia and other destinations this year, and more is expected to be shipped out as traders take advantage of arbitrage opportunities by sending out excess U.S. crude into regions where it can find buyers.
Newer News
22/08 The influence of the US-China trading war on the financial markets
15/08 European stocks enjoy breather as Turkish lira rebounds
12/07 OPEC warns of trade war 'risks' for oil market
15/06 Japan enacts law to ratify CPTPP
17/04 Trump says US could rejoin TPP if deal improved. How hard would it be?
31/03 Thailand wants to join CPTPP this year: Deputy PM
30/03 CPTPP likely to launch early 2019
22/03 Dollar lower, stock markets 'tepid' before Fed
09/01 DOC launches sunset review of anti-dumping measure on Việt Nam wind towers
03/01 Britain interested in joining Trans-Pacific trade deal after Brexit: FT
Older News
28/03 Stocks, dollar recover as markets try to move past Trump's policy stumble
24/03 Oil edges up as Saudis cut supplies to U.S., but global glut remains
24/03 Dollar on back foot after U.S. healthcare vote postponed
24/03 Dollar hangs on for U.S. healthcare vote, Asia shares muted
23/03 Oil bounces off November lows, but bloated US stockpiles pressure market
23/03 Dollar limps up from 4-month low vs yen, Trump's healthcare bill in focus
23/03 Slide in U.S. infrastructure stocks sign of 'Trump trade' weakness
23/03 Asia stocks advance, dollar, oil recover from multi-month lows
21/03 Asian shares near 15-month high, dollar soft on less hawkish Fed
21/03 Dollar slumps after Fed Evans reinforces rate outlook
 
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Market Update
Last updated at 11:31:24 AM
VN-INDEX 1,009.90 +6.93/+0.69%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.