Oil edges up on weak dollar; investors weigh rising supplies, demand outlook
Oil prices edged up in early Asian trade on Friday, supported by a weaker dollar, as investors weighed rising supplies and the impact on fuel demand from the COVID-19 pandemic.
Brent crude futures for June climbed 7 cents, or 0.1%, to $63.27 a barrel by 0106 GMT while U.S. West Texas Intermediate (WTI) crude for May was at $59.77 a barrel, up 17 cents, or 0.3%.
“A weaker USD and falling US bond yields helped support investors’ appetite in commodity markets,” ANZ analysts said in a note.
A weaker dollar makes oil cheaper for holders of other currencies, which usually helps boost crude prices.
Both contracts are on track to post a 2%-3% drop this week after a decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+, to gradually increase supplies by 2 million barrels per day between May and July.