Oil prices rise on weaker dollar ahead of Fed rate decision
SINGAPORE—Oil prices extended gains in Asia Wednesday as traders await a report on US stockpiles, and some analysts said the market was set for a rebalancing after touching bottom. The two main contracts—West Texas Intermediate (WTI) and Brent crude—had risen sharply in European trading Tuesday on speculation that Saudi Arabia plans to reduce drilling, fuelling hopes of an easing of the global supply glut. A weak dollar has also provided support as it makes crude cheaper for customers using other currencies.
At around 0640 GMT Wednesday WTI for delivery in June was up 53 cents, or 1.20 percent, at $44.57 and Brent crude for June had risen 58 cents, or 1.27 percent, to $46.32. “Market sentiment continues to improve,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York.—AFP