Crude Oil Futures Settle Modestly HigherCrude Oil Futures Settle Modestly Higher
Crude oil prices rebounded after early losses on Monday as the dollar fell to its lowest level in two years.
However, amid continued worries about the spread of coronavirus pandemic and concerns over the outlook for near-term energy demand, oil’s gains were not any significantly strong.
West Texas Intermediate Crude oil futures for September ended up $0.31 or about 0.8% at $41.60 a barrel, well off the day’s low of $40.48 a barrel.
Brent crude futures edged up $0.07 to close at $43.41 a barrel.
The dollar index plummeted to 93.48, its lowest in nearly two years, before reovering somewhat to 93.66, still down as much as 0.82% from previous close.
Oil prices fell early on in the session today as escalating tensions between the United States an China raised uncertainty about the pace of economic recovery. Reports showing spikes in coronavirus cases across the world weighed as well.
According to reports, global coronavirus cases exceeded 16 million over the weekend with over 644,000 deaths, casting new potential clouds over the demand outlook.
China today reported its highest number of coronavirus cases in three months after fresh clusters hit three separate regions. The U.K. government announced a 14-day quarantine on travelers coming from Spain.
Meanwhile, hurricane Hanna slammed into South Texas on Saturday, making landfall twice as a Category 1 storm. Although it was later downgraded to tropical storm status, heavy rainfall from Hanna has already produced numerous reports of flash flooding across south Texas.
Oil and gas producers and refiners said on Friday that they did not expect the storm to affect operations.