Crude futures surge on weaker greenback
On Tuesday, crude prices surged driven by a weaker greenback as well as a flood of new cash into the market. However, analysts have already warned that fundamental are still weak amid sparkling producer race in the Middle East.
Front-month Brent oil futures were worth $44.91 a barrel, showing a once percent soar. Additionally, US crude futures also leapt 1%, trading at $43.10.
Financial analysts state that crude prices were raised by a weaker greenback overnight, that potentially increases demand from fuel importers, making use of other currencies than the US dollar, in which oil’s traditionally traded.
A rapid rush of new capital into oil futures was also powering prices, because traders simply raised their holdings of Brent crude futures to a record peak.
The global market is very close to its balance and many market participants actually expect the energy market to try testing higher in the nearer months. By the way, dropping production outside the OPEC would provoke a rebalancing of crude markets.