Share

Oil prices halt rise in Asian trade

Singapore - Oil prices halted their rise in Asia on Monday, hurt by the strengthening US currency which makes the dollar-price commodity more expensive.

The greenback rose after Japan's central bank shocked markets on Friday with a decision to adopt a below-zero interest rate policy in a bid to spur bank lending and drive up inflation.

Bank of Japan Chief Haruhiko Kuroda cited recent financial market turmoil and a China slowdown for ushering in a -0.1% rate on new reserves, and said the bank may go even further into negative territory.

By 02:40 GMT, US benchmark West Texas Intermediate for delivery in March was down 49 cents, to $33.13.

Brent crude for April, a new contract, was trading 53 cents, lower at $35.46 a barrel.

The March contract ended on Friday under a revised scheme in which Brent now expires at the end of each month instead of every 15th.

"Oil has stopped its bullish momentum and most of the reason comes from the relatively strong dollar on light of Japan's surprising negative interest rate decision," said Phillip Futures analyst Daniel Ang.

As oil is traded in dollars, a rise in the greenback will make crude more expensive for holders of weaker units, dampening demand and hurting prices.

Oil prices closed higher last week to end a turbulent January in which prices plunged to 12-year lows in the face of a global oversupply.

Speculation that Russia and the Organisation of the Petroleum Exporting Countries will meet to discuss oil output cuts to push up prices supported sentiment last week.

The news, however, drew scepticism that such a meeting or agreement would take place, limiting its impact.

Ang said crude supply glut is likely to continue limiting any oil price gains.

"I don't think oil prices will continue rising without changes in fundamentals," he told AFP.

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
19.00
-0.5%
Rand - Pound
23.95
-0.3%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.5%
Platinum
895.30
-0.2%
Palladium
991.47
-1.0%
Gold
2,196.11
+0.1%
Silver
24.46
-0.8%
Brent-ruolie
86.09
-0.2%
Top 40
67,818
+0.2%
All Share
74,028
+0.2%
Resource 10
56,225
+1.0%
Industrial 25
103,464
+0.2%
Financial 15
16,455
-0.4%
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