Oil Up, But Concerns About Fuel Demand and Strengthening Dollar Remain
Oil was up Friday morning in Asia, despite persistent fuel demand concerns and a strengthening dollar remaining as challenges to be overcome.
Brent oil futures jumped 1.67% to $63.80 by 9:50 PM ET (1:50 AM GMT) and WTI futures were up 0.75% to $60.45. Both Brent and WTI futures held above the $60 mark, however.
Investors triggered a sudden sell-off on Thursday over a perfect storm of negative factors. Inflation concerns pushing Treasury yields upwards saw the dollar edge up on Friday, making raw materials priced in the U.S. currency comparatively more expensive.
France and Italy are among the countries batting a third wave of COVID-19 cases, and there are emerging signs of declining fuel demand in Asia as well. Commodity trading advisors unwinding some long positions, as daily moves of more than 3% can trigger funds to quickly unload, could be another potential contributor to the selloff.
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