Oil prices higher in Asian trade on weak US dollar

The China Post - - BUSINESS INDEX & -

Oil prices edged higher in Asia Tues­day on a weaker U. S. dollar but gains were capped by con­cerns about tepid Chi­nese de­mand and OPEC’s de­ci­sion to main­tain its cur­rent out­put lev­els, an­a­lysts said.

U. S. bench­mark West Texas In­ter­me­di­ate for July de­liv­ery rose 29 cents to US$ 58.43 while Brent crude for July gained 25 cents to US$ 62.94 in af­ter­noon trade.

The U. S. dollar edged down to 124.44 yen in Asian trade from 124.47 yen in New York well off the 125.56 yen seen on Fri­day.

A weaker green­back makes dollar- priced oil cheaper for buy­ers us­ing weaker cur­ren­cies, boost­ing de­mand and push­ing global prices higher.

How­ever, Sin­ga­pore’s United Over­seas Bank said prices were weighed by “a slump in Chi­nese de­mand and wor­ries that OPEC’s de­ci­sion to pump with- out re­straint could pro­long the cur­rent sup­ply glut.”

China re­leased data Tues­day show­ing in­fla­tion eased in May, miss­ing ex­pec­ta­tions and reignit­ing wor­ries the coun­try could tip into a de­fla­tion­ary spi­ral.

The fig­ures came a day af­ter of­fi­cials said im­ports plunged last month while ex­ports also fell, the lat­est in­di­ca­tors point­ing to a con­tin­ued slow­down in the world’s top en­ergy con­sumer.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.