Oil prices up on weaker dollar, lower inventories

Oil prices up on weaker dollar, lower inventories

Oil prices up on weaker dollar, lower inventories

Oil prices up on weaker dollar, lower inventories

US crude oil stockpiles fell by 4.8 million barrels last week to about 492.9 million barrels, data from API showed. (Reuters/File)

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Oil prices up on weaker dollar, lower inventories

Bearish sentiment is being created by OPEC's preparations to pump more oil: Analyst

Updated 31 December 2020

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LONDON: Oil prices rose on Wednesday on the back of a weaker dollar, a decline in US inventories and Britain's approval of a second coronavirus vaccine, but both benchmark contracts remained on track for a decline of about 20 percent for the year.

Brent crude futures gained 15 cents to $51.25 a barrel by 1453 GMT, having started the year above $66. US West Texas Intermediate (WTI) crude had added 11 cents to trade at $48.11, down from about $62 at the start of 2020.

Both contracts turned negative briefly in early US trading as a bigger fiscal aid package in the US looked increasingly unlikely, dampening hopes for a swifter recovery of oil demand that has been hammered by the coronavirus disease (COVID-19) pandemic.

On the supply front, a Jan. 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia,