Oil Extends Climb With Near-Term Demand Concerns Easing
LONDON (Bloomberg) - Oil gained the most intraday in nearly a week with the market focusing on bright spots in the global demand recovery.
Futures in New York rose as much as 2.4% on Monday alongside a weakening dollar, which makes commodities priced in the U.S. currency more attractive. Federal Reserve Chair Jerome Powell said that the U.S. economy was poised for stronger growth, but he cautioned that the pandemic remains a threat. That’s been highlighted in other regions including parts of Europe, while another wave of infections in India is overwhelming the health system.
"People are feeling a little bit more optimistic about the Covid situation now,” said Michael Lynch, president of Strategic Energy & Economic Research. "There’s hope that the U.S. is on the verge of fully opening up, and that’s going to make a big difference” for fuel demand.
Futures in New York rose as much as 2.4% on Monday alongside a weakening dollar, which makes commodities priced in the U.S. currency more attractive. Federal Reserve Chair Jerome Powell said that the U.S. economy was poised for stronger growth, but he cautioned that the pandemic remains a threat. That’s been highlighted in other regions including parts of Europe, while another wave of infections in India is overwhelming the health system.
"People are feeling a little bit more optimistic about the Covid situation now,” said Michael Lynch, president of Strategic Energy & Economic Research. "There’s hope that the U.S. is on the verge of fully opening up, and that’s going to make a big difference” for fuel demand.