Oil edges up on weak dollar; investors weigh rising supplies, demand outlook By Reuters – Investing.com UK

SectorFinancial Markets

© Reuters. Oil storage containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles By Florence Tan SINGAPORE (Reuters) - Oil prices edged up in early Asian trade on Friday, supported by a weaker dollar, as investors weighed rising supplies and the impact on fuel demand from the COVID-19 pandemic. futures for June climbed 7 cents, or 0.1%, to $63.27 a barrel by 0106 GMT while U.S. West Texas Intermediate () crude for May was at $59.77 a barrel, up 17 cents, or 0.3%.

"A weaker USD and falling US bond yields helped support investors’ appetite in commodity markets," ANZ analysts said in a note. A weaker dollar makes oil cheaper for holders of other currencies, which usually helps boost crude prices. Both contracts are on track to post a 2%-3% drop this week after a decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+, to gradually increase supplies by 2 million barrels per day between May and July. However, analysts expect global oil inventories to continue to fall as fuel demand accelerates in the second half of this year as the global economic recovery gathers steam. ...read more...