Oil prices extended gains on Thursday as a weak dollar and supportive comments from Saudi Arabia outweighed record U.S. production and rising inventories.
U.S. West Texas Intermediate (WTI) crude futures ended Thursday’s session up 74 cents, or 1.2 percent, at $61.34 a barrel, extending the 2.4-percent gain the day before.
Brent crude futures pared earlier losses and were down 2 cents to $64.34 per barrel at 2:29 p.m. ET, after Wednesday’s 2.6-percent climb.
The premium of Brent over WTI was near its lowest in six months.
The dollar was approaching the 3-year low hit in late January. A weaker dollar makes oil and other dollar-denominated commodities cheaper for holders of other currencies.
“I’m surprised that oil prices are falling today given the weaker U.S. dollar. Currently, the direction of the dollar is having a bigger impact on oil prices than fundamentals,” said Rob Thummel, portfolio manager at energy investment manager Tortoise Energy.
Oil had climbed on Wednesday and early on Thursday after Saudi Energy Minister Khalid al-Falih said OPEC would do better to leave the market tight than end the deal on cutting output too soon.
https://www.cnbc.com/2018/02/14/oil-markets-focus-on-saudi-commitment-to-cut-weak-dollar.html
