Mexico City. Oil prices rose sharply on Tuesday as the dollar index fell to its lowest level in more than a week and market investors shifted their attention from geopolitical issues in the Middle East to the state of global economies.
Brent rose 1.42 dollars to 88.42 dollars a barrel, while the US West Texas Intermediate (WTI) added 1.46 dollars to 83.36 dollars.
For its part, the Mexican export mix gained 1.69 dollars, closing at 77.51 dollars per barrel.
The dollar index weakened after S&P Global data showed U.S. business activity cooled in April to a four-month low on weaker demand.
A cheaper dollar typically raises demand for oil denominated in the greenback from investors holding other currencies.
Further support for prices came from euro zone data that showed business activity expanded at the fastest pace in almost a year this month.
“The market has been under pressure from little or no euro zone growth, so anything that shows improvement should be supportive,” said Andrew Lipow, president of Lipow Oil Associates.
Market participants are looking beyond geopolitical disruptions to focus on economic indicators and overall supply and demand balances, Lipow added.
Contracts for international benchmarks Brent and WTI had fallen more than a dollar earlier in the session amid easing tensions between Israel and Iran, along with lingering concerns about demand from top oil importer China.
Investors await the release of U.S. gross domestic product numbers and personal consumption spending data for March – the Federal Reserve’s preferred inflation indicator – this week to assess the path of monetary policy.
On the other hand, it was reported that deals in the oil and gas sector in the United States reached a record figure of 51 billion dollars in the first quarter, extending last year’s fierce pace of mergers focused on the main shale field. from the United States, reported data provider Enverus.
#Oil #prices #rise #due #decline #dollar
– 2024-05-02 03:59:08
