Crude market: Oil rises due to soaring equities
Oil prices strengthened on Wednesday as equities also rose and the dollar traded lower, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Wall Street’s main indices opened higher on Wednesday, supported by heavyweight technology stocks. The dollar traded lower, which can boost oil as investors switch asset classes. Data from the US Energy Information Administration (EIA) is expected to show crude oil stockpiles moving lower in the latest week, according to analysts polled by Reuters. Brent crude futures LCOc1 for December delivery were up $0.49, or 1.18%, at $42.94 a barrel by 1429 GMT. US West Texas Intermediate CLc1 futures also traded up $0.62, or 1.52%, at $40.82 a barrel. “There is a risk that the demand recovery is stalled by the recent increase in Covid-19 cases in many countries,” the International Energy Agency said on Wednesday.
Published in The Express Tribune, October 15th, 2020.
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