Fundamental analysis
20 April, 2021
Oil prices rose on Tuesday as a weaker U.S. dollar supported commodities and on expectations that crude inventories fell in the United States, the world’s biggest oil user, though rising coronavirus cases in Asia capped gains. The dollar index slumped to a six-week low against other major currencies on Monday following a plunge in U.S. Treasury yields last week and remained near the low at 91.055 on Tuesday. Also supporting prices, U.S. crude oil and distillate stockpiles were expected to have dropped last week, while gasoline inventories likely rose, a preliminary Reuters poll showed on Monday. The poll was conducted ahead of reports from industry group American Petroleum Institute (API) due on Tuesday and the Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, on Wednesday. Libya’s National Oil Corp declared force majeure on Monday on exports from the port of Hariga and said it could extend the measure to other facilities because of a budget dispute with the country’s central bank. The disruption could cut Libya’s oil output by 280,000 barrels per day (bpd), knocking production below 1 million bpd for the first time since October, ING said.
