ANKARA – Oil prices edged up on Monday, supported by a weaker dollar, as investors weighed tight supplies and the impact on fuel demand from the coronavirus disease 2019 (Covid-19) pandemic after China reimposed several restrictions.
International benchmark Brent crude was trading at USD102.68 per barrel at 9:33 a.m. local time (0633 GMT) for a 1.50-percent increase after the previous session closed at USD101.16 a barrel.
American benchmark West Texas Intermediate was at USD95.88 per barrel at the same time for a 1.38-percent gain after the previous session closed at USD94.57 a barrel.
The US dollar index, which measures the value of an American dollar against a basket of currencies, including the Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, declined from multi-year highs to 107.88 on Monday, posting a 0.17-percent loss for the day.
The decline in the greenback's value is encouraging oil-importing countries to purchase more crude at cheaper, dollar-denominated prices.
Both benchmarks recorded their largest monthly declines last week, with Brent dropping below USD98 a barrel over fears of an economic recession.
The recent climb in inflation figures, which at the same time hit oil demand, has also triggered worries that the US Fed could make a rate hike of 100 basis points at the conclusion of its two-day meeting on July 27.
However, US Federal Reserve Governor Christopher Waller said Thursday he supports another interest rate hike of 75 basis points later this month.
Supply concerns also supported prices as both Organization of the Petroleum Exporting Countries and the International Energy Agency warned last week that supply shortages are likely amid robust demand.
Meanwhile, renewed Covid-19 outbreaks in China, threatening a halt in demand recovery, tamed further price rises. (Anadolu)
