The oil rose for the second day in a row this Friday due to purchases at a good price, a greater appetite for risk in the market, the retreat of the dollar and fears about the supply of crude oil. This combination of factors took North Sea Brent for November delivery to $92.84 a barrel, 4.13% higher than Thursday’s close in London.
(Read: The dollar in Colombia closed down and fell 114 pesos during the week).
the barrel of West Texas Intermediate (WTI) for October delivery gained 3.89% in New York at $86.79. Price action since Thursday “is mostly explained by the return of risk appetite,” said John Kilduff of Again Capital.
This change in the market made the dollar yield, the safe haven par excellence, and that made oil cheaper for investors in other currencies. The analyst also attributed the rise in crude oil to the message from the White House that it does not plan to continue using massively its strategic reserves after October.
(See: Stock markets in the world rebound and close the week in green).
Russian President Vladimir Putin’s threat to cease the delivery of hydrocarbons to any country that puts a cap on Russian crude prices, project of the European Union and the G7, also supported the prices. According to Kilduff, the rally could quickly give way on fears of a global recession and the wave of lockdowns in China.
AFP
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