SINGAPORE (Reuters) – Oil prices were stable on Wednesday, supported by healthy economic growth and expectations that a weaker dollar could spur fuel demand.
Despite this, crude prices remain well below recent highs due to signs of lingering oversupply, including rising U.S. inventories and ample physical flows globally.
US - West - Texas - Intermediate - WTI
U.S. West Texas Intermediate (WTI) crude futures were at $59.17 a barrel at 0123 GMT, down 2 cents from their last settlement. WTI was trading above $65 in early February.
Brent crude futures were at $62.77 per barrel, up 5 cents from their last close. Brent was above $70 a barrel earlier this month.
Weakness - US - Dollar - Demand - Countries
Ongoing weakness in the U.S. dollar, which potentially stokes demand from countries using other currencies at home, as well as healthy economic growth were supporting oil markets, traders said.
“While we continue to see a firming fundamental backdrop over the course of this year … investors should not discount the caution signs that have been emerging,” investment bank RBC Capital Markets said in a note to clients.
Pockets - Oversupply - Market - Canadian - Bank
“Pockets of oversupply have been emerging in the physical market,” the Canadian bank said, adding that “the tempering physical oil backdrop is … playing a central role in the recent price softness”.
The American Petroleum Institute said on Tuesday that U.S. crude inventories rose by 3.9 million...
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