Crude Oil Recovers After Series of Bearish Sessions

Crude oil futures gained on Monday after touching its lowest in seven months in its earlier session. Weaker greenback and positive movements in Iran’s nuclear program made investors to take fresh positions in oil.

Crude oil futures contract for June delivery gained 1.2 percent or $1.09 to settle at $92.57 per barrel on the New York Mercantile Exchange. Weaker greenback and stronger equities came in support for the crude oil. Moreover, Group of Eight developed nations, including, China, European Union, France, Germany, Russia and the United States are to meet over the weekend to discuss about Iran’s nuclear program and awaiting international sanctions. Oil disruptions are anticipated which would result in more demand for crude oil. Analysts foresee that the oil demand would increase to 1.3 million barrels per day in the second half of the current year.

The US dollar also turned lower which helped the crude oil appreciate. The ICE dollar index which measures the greenback’s performance against the basket of six major rival currencies fell to 80.985 on Monday as compared to 81.163 on Friday’s North American trading session.

Among other energy commodities, gasoline futures contract for June delivery gained 1.8 percent or $0.05 to settle at $2.94 per gallon while heating oil futures contract for same month delivery advanced 1.1 percent or $0.03 to settle at $2.86 per gallon.

Natural gas futures for June delivery declined 4.9 percent or $0.13 to settle at $2.61 per million British thermal units. In the last week natural gas gained 9.3 percent which happens to be its best weekly gains since mid January.


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