Oil prices rose on Monday with Brent Crude and WTI up over 5%, following several days of posting red candles.
Brent crude jumped $3.42 or 5.28% to $68.17 per barrel by 17:14 GMT after touching $64.48 in the early session, its lowest since May 21.
The US oil, Western Texas Intermediate (WTI) also rose $3.41 or 5.49% to $65.55 per barrel after touching a low of $61.74 during the early trading session.
Last week, both Brent and WTI posted the biggest weekly losses in over nine months, losing 8% and 9% respectively.
The Monday gains were boosted by a drop in the US dollar. The dollar index , which measures the currency against six peers, was down 0.4% after hitting its highest in more than nine months on Friday, Reuters reported.
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“Although the oil complex has generally been able to shrug off strength in the stock market, the bullish combo of increased risk appetite and significant weakening in the U.S. dollar indices represents a potent mix that oil has been forced to recognize” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois
In another development Mexico’s oil output was cut by 400,000 barrels per day as a result of a fire that struck an offshore oil platform operated by Mexico’s state-run Pemex.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
