Oil climbs as dollar slumps; gains capped by pandemic surge
- Wall St rebounds on tech boost after fewer jobless claims data
- Bitcoin Falls as Musk Says Tesla (TSLA) Will Suspend Vehicle Purchases Using Bitcoin, Citing Use of Fossil Fuels in Mining
- Alibaba (BABA) Misses Q4 EPS by 21c, Revenue Beats, Offers Guidance
- Amazon (AMZN), McDonald's (MCD) Join the Frenzy to Lure Entry-Level Employees Amid Shortage
- Dollar flat after more evidence of rising inflation
FILE PHOTO: A well head and drilling rig in the Yarakta oilfield, owned by Irkutsk Oil Company (INK), in the Irkutsk region, Russia, March 11, 2019. REUTERS/Vasily Fedosenko/File Photo
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
By Devika Krishna Kumar
NEW YORK (Reuters) -Oil prices edged higher on Monday, supported by a weaker U.S. dollar but gains were capped by concerns about the impact on demand from rising coronavirus cases in India.
Brent crude settled up 28 cents, or 0.4%, at $67.05 a barrel, after rising 6% last week. West Texas Intermediate (WTI) U.S. oil ended the session up 25 cents, or 0.4%, at $63.38 a barrel, having gained 6.4% last week.
The U.S. dollar traded at a six-week low versus major peers on Monday, with Treasury yields hovering near their weakest in five weeks.
A weaker dollar makes oil cheaper for holders of other currencies. However, COVID-19 cases have surged in India, the world's third biggest oil importer and consumer, dampening optimism for a sustained global recovery in demand.
"If today's broad-based weakness in the U.S. dollar is sustained, the energy complex should be able to maintain the bulk of last week's gains," said Jim Ritterbusch, president of Ritterbusch and Associates.
"The primary hazard to continued oil price strength is the possible pre-emergence of COVID-19 case counts on a broad scale ... large portions of Asia are seeing a renewed increase in cases that could force a re-appraisal of recent upward global oil demand adjustments."
India reported a record rise in infections, which lifted overall cases to just over 15 million, making the country the second-worst affected after the United States, which has reported more than 31 million infections.
Deaths from COVID-19 in India also rose by a record 1,619 to nearly 180,000.
The capital region of Delhi ordered a six-day lockdown, joining around 13 other states across India that have decided to impose restrictions, curfews or lockdowns in their cities.
"This new wave of measures, while so far likely to be less stringent than what we saw in March 2020, when gasoline and gasoil/diesel demand in the country fell by close to 60%, is nevertheless set to weigh on transportation fuel consumption," consultancy JBC said.
Hong Kong will suspend flights from India, Pakistan and the Philippines from April 20 due to imported coronavirus infections, authorities said on Sunday.
Lending some support, Saudi Arabia's crude oil exports fell in February to their lowest in eight months, the Joint Organisations Data Initiative (JODI) said on Monday, as the world's biggest oil exporter voluntarily capped output to support oil prices.
JP Morgan now expects Brent prices to break the $70 mark by May, compared with September in its previous forecast, the bank said in a recent note. It still expects them to finish the year at a similar level of about $74.
(Additional reporting by Ahmad Ghaddar in London, Aaron Sheldrick in Tokyo; Editing by David Gregorio and Mark Potter)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Crude Inventory Declined 426 Thousand Barrels Last Week, Says EIA
- For deep-diving elephant seals, it takes lots of work to stay fat
- Fed's Barkin: Ability to "unclog" labor market critical to recovery
Create E-mail Alert Related CategoriesCommodities, Reuters
Related EntitiesJPMorgan, Crude Oil
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!