NEW YORK (APP) – Oil prices got a boost Friday from another fall in the dollar and market adjustment at the end of the April contract for WTI, analysts said.
The US benchmark West Texas Intermediate for delivery in April added $1.76 to $45.72 a barrel in New York trade.
In London, Brent North Sea crude for May delivery rose 89 cent to $55.32 a barrel. Besides the need for traders to square positions at the expiry of the WTI April trade, the push upward on crude came from the dollar’s fall, to $1.0808 per euro and to 120.00 yen.
“Earlier in the day, when the dollar started to come off, we saw some buying in crude,” said Gene McGillian of Tradition Energy.
But he suggested the rebound could be transitory. “We continue to be just above six-year lows, and when you step back, you don’t see any fundamental change in the market, so prices should continue to be under pressure,” McGillian said.
Timothy Evans of Citi Futures echoed that view of Friday’s gains. “It’s unclear if either of these supports will carry over into Monday’s trade,” Evans said.
“The buying in April WTI, in particular, seems more a function of the remaining order balance with just hours left to roll or cover positions, than any shift in what still look like bearish fundamentals including the well-established uptrend in US crude oil inventories.”
