Oil pushes higher aided by dollar amid grim outlook

Oil pushes higher aided by dollar amid grim outlook

BloombergOil pushed higher with support from a weakening dollar as investors weighed a worsening short-term demand outlook against an eventual rebound as Covid-19 vaccines are rolled out. Futures in New York rise above $48 a barrel, though liquidity was thin in the period between Christmas and New Year. A dip in the dollar boosted the appeal of commodities such as oil that are priced in the currency. Crude was also aided by broader market strength, with equities nearing record levels following US President Donald Trump's signing of a $900 billion virus-relief package. The coronavirus continues to surge unabated, however. The UK government is enlisting the armed forces to help with testing as hospitalisations exceeded the peak recorded last spring. The virus is also making a comeback in Asia, with Thailand tightening restrictions and South Korea's daily death toll rising to a record. Crude's vaccine-driven rally has faltered in the past couple of weeks on signs it may have gotten ahead of the recovery in energy demand. The OPEC+ alliance is also set to add another 500,000 barrels a day of output to the market from January, while Russia's deputy prime minister has said the nation would support a further