By Munachimso Obienyi
Amid weaker U.S dollar and supply woes, oil prices climbed on Monday.
The gains came from the spectre of lower fuel demand from China as it persisted with its stringent zero-COVID policy.
Brent crude futures rose 74 cents, or 0.8 per cent, to $92.36 per barrel by 0505 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 78 cents, or 0.9 per cent to $86.24 per barrel.
The U.S. dollar index – which measures the greenback against six major peers including sterling – sagged near a one and a half week low as Britain’s dramatic U-turn over a controversial tax-slashing “mini-budget” lifted risk appetite.
A weaker dollar makes oil cheaper for non-U.S. buyers. Following the steep production cut agreed on by OPEC+ – the Organization of the Production Exporting Countries (OPEC) and its allies, including Russia – earlier this month, investors have been seen increasing their long positions in futures, ANZ Research analysts said in a note.
Furthermore, NwafoLive learnt that OPEC+ member states have been lining up to endorse the cut to the output target after the White House accused Riyadh of coercing some other nations into supporting the move.
Meanwhile, expectations that China will keep with loose monetary policy to help its economy, hobbled by COVID-19 restrictions, lent some support to oil prices.
