Oil surges as dollar continues slide against the yen

Both main crude contracts made strong gains, with WTI testing $50 a barrel for the first time since late May and Brent heading towards $53, while mining giants BHP Billiton and Rio Tinto saw their share price rise as commodities strengthened.

Oil surges as dollar continues slide against the yen

World Bulletin / News Desk

Oil prices surged Monday to build on last week's rally as the dollar clawed back losses following concerns over gridlock in Washington and renewed tensions on the Korean peninsula.  

On equity markets, Tokyo closed lower as the yen hardened against the dollar earlier Monday while Shanghai edged up, shrugging off slightly lower than expected purchasing managers' index (PMI) data, a gauge of factory conditions.

Hong Kong advanced sharply in afternoon trade to cap a strong month which has seen the Hang Seng set for its biggest gain since January. 

Asia-focused banking giant HSBC was one of the index's strongest movers after it announced forecast-beating profits.

Analysts said a host of factors was pushing investors' newfound optimism in oil. 

"Inventories are showing massive drawdowns, Saudi Arabia seems intent on playing its role as the world’s swing producer ahead of the Aramco IPO, impending sanctions on Venezuela by the US will almost certainly be oil price supportive with a weaker US dollar and conflict within Washington DC all lending a hand," said Jeffrey Halley, senior market analyst at OANDA.

"There also appears to be less urgency by shale producers to hedge forward production for now which has snuffed out previous rallies."

Last Mod: 31 Temmuz 2017, 11:05
Add Comment