Oil Rises as Dollar Weakens, Geopolitical Uncertainty
Oil prices rose for a second day as a weaker dollar boosted the appeal of commodities priced in the currency and geopolitical turmoil limited the chances of more supply from Russia and Iran.
West Texas Intermediate crude futures were trading near $63 a barrel after jumping 2.9% on Monday, while Brent settled above $64. The dollar gauge was near its lowest level since 2023, with Wall Street banks reinforcing their calls for the greenback to continue its decline.
On the geopolitical front, Russia and Ukraine concluded a second round of talks in Istanbul that failed to bring the two sides closer to ending their war. Meanwhile, President Donald Trump said the U.S. would not allow uranium enrichment as part of any deal with Iran, as Tehran pressed for assurances that any agreement would include sanctions relief.
Crude oil rose as much as 5.1% on Monday after OPEC+ increased supply in line with expectations, easing fears of a bigger increase and leading to the unwinding of bearish bets made before the decision over the weekend. Oil is still down about 12% this year, on concerns that the trade war will crimp demand and as OPEC+ abandons its previous strategy of keeping prices higher by curbing production.
WTI for July delivery rose 0.8% to $63.04 a barrel as of 7:41 a.m. in Singapore.
Brent for August settlement closed 1.1% higher at $64.63 a barrel on Monday.
Source: Bloomberg
