Oil skyrockets 5%, snaps 7-day losing streak as Dollar weakens, equities step up

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Oil skyrockets 5%, snaps 7-day losing streak as Dollar weakens, equities step up

On Monday, both US and UK crude oil futures’ prices had jumped as much as 5 per cent, snapping a slanderous leg of losing streak that had spanned across seven straight sessions in a row, as a softer US Dollar alongside a robust rise in global equities had bolstered crude contracts after tumbling to multi-months low last week.

In point of fact, latest gain in crude oil contracts’ prices came forth as both crude benchmarks had logged their largest weekly percentage declines in more than nine months last week, while US crude had skidded 9 per cent and Brent crude futures had nosedived as much as 8 per cent amid frets of a potential supply glut alongside a tempestuous demand-crunch lurking over the horizon.

Nonetheless, although a sharp drop in the greenback on Monday had boosted oil prices and a number of commodity trader appeared to have engaged in buying the dips, yet near-term outlook remained gloomier. However, ahead of a Central Bankers’ meet scheduled to take place on August 27-28 which would less likely to address a blistering surge in inflation indicators while averting taper-talks in context of a rapid rise in delta cases, the US Dollar index (DXY) measured against a basket of six major currencies on an average faltered 0.4 per cent.

Meanwhile, forecasting a mixed picture in crude oil market over coming days, president of Ritterbusch and Associates in Galena, Illinois, Jim Ritterbusch said, “Although the oil complex has generally been able to shrug off strength in the stock market, the bullish combo of increased risk appetite and significant weakening in the U.S.

dollar indices represents a potent mix that oil has been forced to recognize.

Crude oil gains 5% as US Dollar falls, equities rise

Citing statistics, in the day’s commodity market wind-down, UK crude jumped 5.6 per cent to $68.82 per barrel, while US West Texas Intermediate (WTI) crude oil futures scheduled to be expired on October, gained 5.8 per cent to settle down the day at $65.75 a barrel.