Crude oil prices soared on Friday, as a weakening greenback gave some substantial support to prices notwithstanding weak fundamentals.
On the New York Mercantile Exchange light sweet crude futures for March delivery grew to $32.08 a barrel. April Brent crude on London’s ICE Futures exchange climbed to$34.67.
An investment analyst of Phillip Futures, Daniel Ang is assured that oil prices will greatly depend on whether the greenback keeps weakening or not. He also added that American nonfarm payroll data due Friday will definitely determine the greenback’s strength.
The US Dollar Index has already sagged to 96.5. If nonfarm payrolls appear to be lower than expected, then the US Dollar Index will most likely drop further. By the way, the index touched 97.5 yesterday.
The, recent weakness in the greenback gave support to other commodities priced in the currency, thus making imports more affordable for some consuming countries, such as China.
Oil fundamentals are still weak because of supply overhang, as key producers aren’t going to cut output notwithstanding prices falling abruptly for about two years.
Oil prices fluctuated by speculation of a collective output cut by some oil producers, including members of OPEC.