Brent futures advanced 1.63%, while West Texas Intermediate futures advanced 1.78%.
The prices of Petroleum rose sharply on Tuesday, after the Dollar Index (DXY) fell to its lowest level in more than a week (105,656) and market investors will shift their attention from geopolitical tensions in Middle East to the current state of global economies.
Crude oil futures Brent rose $1.42, or 1.63%, to $88.42 a barrel, while crude oil futures West Texas Intermediate (WTI) They did so by 1.46 dollars (1.78%) at 83.36 dollars per barrel.
The DXY weakened after S&P Global data showed US business activity cooled in April to a four-month low due to weaker demand. A dollar cheaper usually raises the demand for Petroleum denominated in the greenback by investors who own other currencies.
In turn, the data of the Euro zone which showed business activity expanded at the fastest pace in almost a year this month. “The market has been under pressure from little or no euro zone growth, so anything that shows improvement should be supportive,” he said. Andrew Lipowpresident of Lipow Oil Associates.
The market is focused on global economic indicators
The market is looking beyond geopolitical disruptions to focus on economic indicators and overall supply and demand balances, Lipow added.
However, both contracts had fallen by more than one dollar earlier in the session given the easing of tensions between Israel and Iranalong with lingering concerns about demand from the main importer of Petroleum, China.
Investors are awaiting the release of U.S. Gross Domestic Product (GDP) figures this week, as well as personal consumption spending data for March—the nation’s preferred inflation indicator. Federal Reserve (Fed)— to evaluate the trajectory of monetary policy.
Market agents expect crude oil inventories USA have risen over the past week, while refined products prices likely fell, a preliminary Reuters poll of analysts showed.
Source: Ambito
