Oil edges up on weaker dollar as Britain EU vote looms
SINGAPORE—Oil climbed in Asia Wednesday after Federal Reserve boss Janet Yellen’s cautious remarks on the US economy weakened the dollar and traders nervously await Britain’s vote on its future in the European Union. Traders are also waiting for the release later in the day of official US stockpiles data, hoping for an idea about demand in the world’s top oil consumer, after an industry group said supplies had tumbled last week.
Yellen warned Tuesday the US economy faces “considerable uncertainty” from slower domestic activity and from a possible British vote to exit the EU, signalling that a hike in US interest rates may be some time off. She said she wants the economy to be on a “favourable path” before the central bank raises borrowing costs, which sent the greenback tumbling. A weaker dollar makes oil cheaper for anyone using other currencies.—APP