Oil rises on weaker dollar — but weaker demand is likely
The weaker dollar and lower inventories support crude prices, as emerging-market turmoil casts doubt over oil demand
London — Oil rose on Thursday, encouraged by a weaker dollar and evidence of strong US fuel demand, though demand prospects remain clouded by the turmoil engulfing emerging markets and an escalation in the US trade dispute with China. Emerging-market stocks, bonds and currencies have plunged in recent weeks in response to financial crises in the likes of Turkey, SA and Venezuela. The dollar eased by about 0.1% against a basket of major currencies on Thursday. But it has gained 3.3% this year and has benefited from the flight out of emerging-market assets. As a result, major oil consumers are finding their import bills rising quickly. Brent crude futures were up 39c at $77.66 a barrel by 9.42am GMT, still short of Tuesday’s high near $80. US futures were up 12c at $68.85. "In the last week we’ve seen the focus shift again from supply back to demand and the continued calamity in emerging-market stocks, bonds and currencies is weighing on the medium-and longer-term demand outlook," sai...
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