Dhaka, Bangladesh
Oil prices regain ground, dollar index holds losses

Oil prices regain ground, dollar index holds losses

LONDON, Apr 20: Oil prices regained some ground on Thursday, after steep losses in the previous session, as leading Gulf oil producers signaled a likely extension of OPEC-led supply cuts beyond the middle of the year, reports Reuters. Brent crude futures were at $53.45 per barrel at 1117 GMT, up 52 cents from their last close. U.S. crude futures were up 45 cents at $50.89 a barrel. OPEC members Saudi Arabia and Kuwait signaled that an effort by the Organization of the Petroleum Exporting Countries and other producers, including Russia, to cut oil output was likely to be extended beyond June. But bloated inventories weighed. Despite a drop in U.S. crude stocks last week, an unexpected 1.5-million-barrel build in gasoline stocks drove prices more than 3.5 percent lower on Wednesday. U.S. crude oil production rose to 9.25 million barrels per day, official data showed, up almost 10 percent since mid-2016. “The rebalancing in U.S. crude stocks may have got under way, but concerns of further gasoline builds are rife even as the U.S. summer driving season shifts up a gear,” said Stephen Brennock, an analyst with PVM Oil Associates. “With questions hanging over U.S. gasoline demand, any further product builds will act as a brake on the oil price recovery.” Global fuel stocks are well above the five-year average, and Saudi Energy Minister Khalid al-Falih was quoted on Thursday as saying inventories remained elevated in part because traders were selling supplies out of tanker storage. In China, signs emerged that refiners were using record crude imports to produce more fuel such as gasoline and diesel than the country can absorb. China’s March gasoline output rose 2.5 percent year-on-year to 11.24 million tonnes, the highest level since at least April 2014, China’s National Bureau of Statistics said, adding fuel into an Asian market that is already well supplied. The dollar index held to earlier losses on Thursday as the latest data on domestic jobless claims and business activity in the Mid-Atlantic region didn’t change traders’ view of modest U.S. economic growth and low inflation. The gauge of greenback’s value against a group of six major currencies .DXY was last down 0.1 percent at 99.617. Meanwhile, Xinhua adds; the central parity rate of the Chinese currency renminbi, or the yuan, weakened 128 basis points to 6.8792 against the U.S. dollar Thursday, according to the China Foreign Exchange Trade System. In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. The central parity rate of the yuan against the Hong Kong dollar is based on the central parity rate of the yuan against the U.S. dollar and the exchange rate of the Hong Kong dollar against the U.S. dollar at 9 a.m. in international foreign exchange markets on the same business day. The central parity rates of the yuan against the other 21 currencies are based on the average prices offered by market makers before the opening of the interbank foreign exchange market.

Share |