Crude oil hit $111 a barrel amid weak dollar and OPEC’s stance to support Russia
During the week’s opening, oil prices rose as investors weighed tight as concerns about global growth were exacerbated by-product markets and a weaker dollar.
It has gained for four consecutive weeks, the longest run since February, as West Texas Intermediate climbed toward $111 a barrel.
The price of gasoline and diesel has risen to records ahead of the start of the US driving season, which begins in about a week. Money managers have also increased their bullish crude bets.
Saudi Arabia signaled at the weekend that it will continue to support Russia’s role in the OPEC+ group of producers, undermining US efforts to isolate Russia for its invasion of Ukraine. Prince Abdulaziz bin Salman said the kingdom was hoping to reach an agreement with OPEC+, which includes Russia.
Read: Gainers and losers on the Accra bourse for last week
- As a result of rising demand and the global fallout from Russia’s invasion, oil prices have surged this year.
- Energy costs have increased, causing central banks to raise interest rates and stoking investor concerns about slowing growth.
- Likewise, China has imposed a series of stringent lockdowns to tame Covid-19 outbreaks, hurting Asia’s largest economy.
- China remains a mixed bag. Shanghai officials have established criteria to classify parts of the commercial hub as low-risk for Covid-19 as they seek to end the deadly pandemic at Beijing, however, the number of cases reported was at an all-time high, raising concerns about a lockdown in the capital.
- Crude’s price may have been boosted by a weaker dollar, which makes the commodity cheaper for holders of other currencies.
The Greenback fell on Monday after a 1.4% drop last week, the most since November 2020
