Oil backs off 13-month high as dollar rises

Economies.com
2021-02-26 09:10AM UTC

Oil prices fell on Friday, deepening losses for the second straight day and pulled back from a 13-month high, due to profit-taking and the US dollar's rise.

 

US crude fell 1.4% to $62.56, after opening at $63.44, and hit a day high at $63.55, and Brent crude fell 2.75% to $65.18, after opening at $67.03, and hit a day high at $67.68.

 

US crude fell less than 0.1%, after hitting a 13-month high of $63.79 a barrel, and Brent futures fell 0.3%, after hitting the highest since January 2020 at $67.68 a barrel.

 

The dollar index rose 0.4% today, within recovery attempts from a 7-week low of 89.68 points against a basket of major currencies.

 

A rising greenback weighs down on the prices of dollar-denominated commodities, making them more expensive for other currencies holders.

 

The US dollar is being lifted by the US 10-year Treasury bond yield jump to a year high, which raised bets that the Federal Reserve would start tightening monetary policy to face the rising inflation rate in the country.

 

However, oil prices are still high by more than 5% this week, to head for the third weekly gain in a month, thanks to expectations of a global supply shortage during the first quarter of this year.

 

Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.

 

Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.

Commodities News

Gold News

Commodities

Gold hits fresh record highs, marking a 6% quarterly profit
2024-03-28 20:28PM UTC
Gold Prices Gold prices rose on Thursday to fresh record highs while the dollar eked out gains ...
Copper News

Commodities

Copper edges up while facing pressures from Chinese demand concerns
2024-03-28 16:45PM UTC
Copper prices rose modestly on Thursday while the dollar gained ground, with ongoing concerns about ...
Oil News

Commodities

Oil prices extend gains after strong US growth data
2024-03-28 13:03PM UTC
Global Oil Prices Global oil prices extended their gains in American trade on Thursday and hit ...

Commodities Technical Analysis

Natural gas Analysis

Commodities

Natural gas price still confined – Forecast today – 29-3-2024
2024-03-29 06:16AM UTC
Natural Gas Price Forecast for Today - 29-3-2024 No news for natural gas price until this ...
Platinum Analysis

Commodities

Platinum price renews the positive action – Forecast today – 29-3-2024
2024-03-29 06:10AM UTC
Platinum Price Forecast for Today - 29-3-2024 Platinum price confirmed keeping the bullish ...
Copper Analysis

Commodities

Copper price gets the positive momentum – Forecast today – 29-3-2024
2024-03-29 06:09AM UTC
Copper Price Forecast for Today - 29-3-2024 Copper price repeated the positive stability ...