Oil Market: Dollar’s volatility adds to crude gains

LONDON: In midday deals on Friday, Brent North Sea crude for April delivery added 29 cents to stand at $34.75 per barrel. US benchmark West Texas Intermediate for delivery in March added 38 cents to $32.10 a barrel, compared with Thursday’s close. Shailaja Nair, from energy information provider Platts in Singapore, said crude prices have received support from the flagging dollar. “The dollar will always have an add-on effect on crude oil prices... The volatility in the dollar and the volatility in crude have been like a constant for the past two to three weeks now,” Nair said. Oil is traded in dollars and a softening of the US currency makes crude cheaper for holders of other units, increasing demand for the commodity. The oil market has witnessed another choppy week as traders tracked hopes of a coordinated output reduction by major world petroleum producers.

Published in The Express Tribune, February 6^th, 2016.

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