Following the latest US dollar strengthening, oil prices experienced a drop this week. Nevertheless, traders could see an upward correction on Thursday as the market prepares for a fresh report from the Energy Information Administration (EIA), showing a change in crude oil supplies over the previous week.
Dollar’s strengthening caused considerable decline in most of the dollar-backed commodities, as the first Q1 and April disappointment from the recent data faded away and latest inflation gauge helped the sentiment to recover.
Preceding report from the American Petroleum Institute (API) showed an increase of crude oil barrels over the previous week by 1.3 million, halting a serie of declines during previous three weeks.
Start of the summer season could help the commodity to strengthen further, as we can see slightly rising demand, which could peak during next months.
Nevertheless, ample supplies provided mostly by the OPEC, United States, which lifted its production and also output-increasing Russia provide constantly a strong bearish pressure as the demand is lagging behind the enormously strong global supply.
At the time of writing, West Texas Intermediate (WTI) crude oil futures were seen trading 0.59% higher at $57.85 a barrel, while Brent crude oil futures rose 0.92% to trade at $62.65 per barrel.
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