Oil prices gain as investors shift to risk assets amid dollar slide

01.09.2020 - Korneychuk Evgeniya
Oil prices gain as investors shift to risk assets amid dollar slide

Oil prices gained in early trade on Tuesday, recovering overnight losses, as investors turned to risky assets and away from the safe-haven dollar, which fell to more than a two-year low.

Brent crude futures rose 0.6%, or 27 cents, at $45.55 per barrel. U.S. West Texas Intermediate crude futures climbed 0.5%, or 21 cents, at $42.82 per barrel.

Both benchmarks fell 1% on Monday on oversupply worries as global fuel demand remained below pre-pandemic levels.

The U.S. dollar was last down 0.04% to 92.146 against a basket of currencies after it fell to its lowest in May 2018. The greenback continued its plunge as the U.S. Federal Reserve announced a policy shift on inflation last week.

A weak U.S. dollar attracted investors into dollar-priced oil and other commodities. 

Still, the market is focused on the stalled fuel demand recovery as countries worldwide worked on containing the virus with lockdowns and social restrictions.

Analysts expect U.S. crude stocks dropped by 2 million barrels in the week ended Aug. 28 ahead of the release of U.S. inventories data.

Gasoline inventories are expected to fall by 3.6 million barrels. Distillate stocks, including diesel and heating oil, are expected to decline by 1.5 million barrels. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?