Oil rises as the dollar declines, but the demand outlook casts a shadow

Oil prices rose Friday, November 18, with the decline of the dollar, but they are heading towards incurring weekly losses due to expectations that the pace of the sharp rise in US interest rates will not ease, as well as expectations of weak demand from China, the largest importer of crude, with the increase in cases of Covid-19 disease.

Brent crude futures rose 67 cents, or 0.8%, to $90.45 a barrel, but it was not far from the four-week low it reached in the previous session at $89.53 a barrel.

West Texas Intermediate crude futures rose 70 cents, or 0.9%, to $82.34 a barrel, but held near a six-week low.

A slight decline in the dollar supported oil prices today, Friday, given that the decline in the US currency makes oil less expensive for holders of other currencies.

Recession fears prevailed this week, despite the European Union’s imminent implementation of an embargo on Russian crude oil on December 5 and the OPEC+ group’s supply cut.