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Weaker pound, retail stocks boosts FTSE 100; Mid-caps end best day in two-weeks;
Published at 22/04/2021 at 17:35 -
Solid earnings boost European stocks as ECB stands pat
Published at 22/04/2021 at 17:22 -
FTSE 100 rises on miners, industrials boost; Rentokil Initial slumps
Published at 22/04/2021 at 08:22 -
European shares extend gains on upbeat Nestle, Volvo earnings
Published at 22/04/2021 at 08:17 -
UK Stocks-Factors to watch on April 22
Published at 22/04/2021 at 07:52 -
UK Stocks-Factors to watch on April 22
Published at 22/04/2021 at 06:17 -
FTSE 100 ends higher on AstraZeneca, oil stock boost; Just Eat Takeaway slumps
Published at 21/04/2021 at 17:29 -
European shares rebound on strong earnings, M&A speculation boosts Hugo Boss
Published at 21/04/2021 at 17:17 -
FTSE 100 rises on boost from BP, Shell; Just Eat Takeaway slumps
Published at 21/04/2021 at 08:23 -
European stocks bounce back as ASML outlook lifts tech sector
Published at 21/04/2021 at 08:20
Forex News
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FOREX-U.S. dollar perks up after ECB policy talk cools euro
Published at 22/04/2021 at 20:53 -
FOREX-Euro and U.S. dollar waffle as markets weigh ECB policy talk
Published at 22/04/2021 at 15:52 -
FOREX-Euro inches higher ahead of ECB meeting, dollar languishes
Published at 22/04/2021 at 12:09 -
FOREX-Euro tiptoes higher ahead of ECB meeting
Published at 22/04/2021 at 09:12 -
FOREX-Dollar near multi-week lows as yield support fades, euro eyes ECB
Published at 22/04/2021 at 06:17 -
FOREX-Dollar loses bond yield support, euro looks to ECB for inspiration
Published at 22/04/2021 at 03:24 -
FOREX-Dollar stalls as yield gains slow, focus shifts to ECB
Published at 22/04/2021 at 02:03 -
FOREX-U.S. dollar losses bounce after Canada tips toward higher rates
Published at 21/04/2021 at 21:00 -
FOREX-U.S. dollar losses bounce after Canada tips toward higher rates
Published at 21/04/2021 at 17:51 -
FOREX-Dollar firm as COVID-19 resurgence dampens risk appetite
Published at 21/04/2021 at 15:25
Market News
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Oil steady as Libya output decline offsets risks to Asian demand
Published at 22/04/2021 at 20:47 -
PRECIOUS-Gold slips 1% as stronger U.S. dollar weighs
Published at 22/04/2021 at 19:15 -
PRECIOUS-Gold slips from 2-month peak, palladium holds near record high
Published at 22/04/2021 at 13:20 -
PRECIOUS-Gold nears $1,800 level as U.S. dollar, yields lose ground
Published at 22/04/2021 at 08:25 -
Oil falls 3rd day on U.S. stock build, surging COVID-19 cases
Published at 22/04/2021 at 03:04 -
PRECIOUS-Gold hovers near eight-week high on easing U.S. dollar, yields
Published at 22/04/2021 at 02:37 -
Oil prices drop 2% on U.S. crude build, COVID-19 surge in India
Published at 21/04/2021 at 22:33 -
PRECIOUS-Supply woes push palladium to record high, gold up more than 1%
Published at 21/04/2021 at 18:54 -
PRECIOUS-Gold gains as easing U.S. Treasury yields boost appeal
Published at 21/04/2021 at 14:04 -
PRECIOUS-Gold gains as softer U.S. dollar, yields lift appeal
Published at 21/04/2021 at 08:11
Oil prices fall on rising U.S. dollar, expectations for supply gains
Published at
26/02/2021 at 02:45
By Sonali Paul
MELBOURNE, Feb 26 (Reuters) - Oil prices fell on Friday as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to come back to the market.
U.S. West Texas Intermediate (WTI) crude futures dropped 36 cents, or 0.6%, to $63.17 a barrel at 0241 GMT, giving up all of Thursday's gains.
Brent crude futures for April fell 18 cents, or 0.3%, to $66.70 a barrel, following a 16 cent loss on Thursday. The April contract expires on Friday. The more active May contract fell 32 cents, or 0.5%, to $65.79.
"Bonds are selling off reasonably aggressively and the U.S. dollar has firmed this morning. That's providing a bit of a headwind for crude oil this morning," said Lachlan Shaw, National Australia Bank's head of commodity research.
A stronger greenback makes U.S.-dollar priced oil more expensive for those buying crude in other currencies.
Despite the drop in prices on Friday, both Brent and WTI are on track for gains of about 20% this month, as markets have grappled with supply disruptions in the United States, while optimism has built for demand to improve with vaccine rollouts.
Investors are betting that next week's meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, will result in more supply coming back to the market, given the recent jump in prices and expectations that demand will improve as pandemic lockdowns ease heading into the northern hemisphere summer.
"The stakes at play this time around are particularly large (for OPEC+) insofar as oil prices have more than recovered to pre-pandemic levels, global inventories are continuing to trend down, and vaccine rollouts are accelerating," Shaw said.
"The market's probably right to think at this price level and given what the fundamentals are doing, there'll be more supply coming into the market over time."
U.S. crude prices also face headwinds from the loss of refinery demand after several Gulf Coast facilities were shuttered during the winter storm last week.
There is about 4 million barrels per day of capacity still shut and it may take until March 5 for all of the shut capacity to resume though there is risk of delays, analysts at J.P. Morgan said in a note this week.
"The greater concern to U.S. crude oil market participants should be the recovery of refinery demand," the analysts said.
"As refiners assessed the damage to their facilities, it became clear that the road to recovery would be weeks rather than days."
(Reporting by Sonali Paul; Editing by Christian Schmollinger)
((Sonali.Paul@thomsonreuters.com; +61 407 119 523))