Share

Oil prices edge back from 2016 highs

New York - Oil prices pulled back a tick Friday from 2016 peaks, capping a fourth straight week of gains as the market pushed higher supported in part by a weaker dollar.

Traders seemed bent on looking past the global supply glut and media reports of higher OPEC production in favor of optimism that eventually the market will find a balance that would stabilize prices, which have slid from mid-2014 peaks above $100 a barrel.

US benchmark West Texas Intermediate (WTI) slipped 11 cents to $45.92 a barrel on the New York Mercantile Exchange.

In London, Brent North Sea crude for delivery in June, the European benchmark, lost only one cent at $48.13 a barrel.

Over the course of the week, WTI rose 5.0% and Brent 6.7%, pushing the month's gains to around 20% for both.

"The supply situation is still a factor in terms of oversupply and I think we rallied as much as we can on the hopes of a rebalancing coming at the end of the year," said John Kilduff of Again Capital.

Also underpinning the market was the dollar's weakness after the Federal Reserve indicated Wednesday it was in no hurry to raise interest rates and the Bank of Japan's rejection of more stimulus the next day, which sent the yen soaring, analysts said.

A weak dollar makes oil, priced in the US currency, more affordable for buyers.

"The declining US oil production and a weaker US dollar are giving tailwind to prices, whereas the ongoing oversupply and record-high US crude oil stocks are being ignored," said Commerzbank analysts in a client note Friday.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders