Oil Rally Held Back by Dollar Gains and Equity Sell-Off
Bloomberg 1/11/2021 Andres Guerra Luz
(Bloomberg) Oil closed little changed with a stronger U.S. dollar and broader market selloff sapping momentum from a recent rally.
Futures in New York ended the session up 1 cent at the highest since February on Monday following a surge above $50 a barrel last week. Yet, crude did not manage to eke out a larger advance with U.S. equities dropping from records and dollar gains reducing the appeal of commodities like oil that are priced in the currency.
With crude starting the year strongly, Goldman Sachs Group Inc. said it expects Brent to reach $65 a barrel by the summer, sooner than previously anticipated. Last week, Saudi Arabia pledged deeper output cuts, a move that Goldman said will bring forward market tightness. The kingdom also increased its oil prices to Asia, and was followed by Iraq, Abu Dhabi and Kuwait.
Oil Rally Held Back by Dollar Gains and Equity Sell-Off
Bloomberg 1/11/2021 Andres Guerra Luz
(Bloomberg) Oil closed little changed with a stronger U.S. dollar and broader market selloff sapping momentum from a recent rally.
Futures in New York ended the session up 1 cent at the highest since February on Monday following a surge above $50 a barrel last week. Yet, crude did not manage to eke out a larger advance with U.S. equities dropping from records and dollar gains reducing the appeal of commodities like oil that are priced in the currency.
With crude starting the year strongly, Goldman Sachs Group Inc. said it expects Brent to reach $65 a barrel by the summer, sooner than previously anticipated. Last week, Saudi Arabia pledged deeper output cuts, a move that Goldman said will bring forward market tightness. The kingdom also increased its oil prices to Asia, and was followed by Iraq, Abu Dhabi and Kuwait.
Gold tumbles back below US$1,900 as technicals drive selling bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.