AFP, London :
The world oil market see-sawed this week as traders tracked growing investor risk appetite, fluctuations in the dollar and stubborn supply glut worries.
“Oil prices are continuing their rollercoaster ride,” wrote Commerzbank analysts in an oil research note.
Crude futures began on the back foot on Monday, sliding as an increase in US drilling activity and a strong dollar reversed gains from last week’s better-than-forecast US jobs report.
A strong greenback makes dollar-priced commodities like oil more expensive for those using other currencies. That tends to weigh on demand and price levels.
Oil then rebounded Tuesday as OPEC forecast an easing of the global oversupply that has weighed on the market in recent years.
Traders bid up crude oil after Monday’s rout, in what some analysts said was due partly to a technical correction.
Sentiment also brightened on speculation over possible global central bank stimulus measures following Britain’s recent referendum vote to leave the European Union.
In its July report, the Organization of the Petroleum Exporting Countries said it expected the global supply glut to ease further this year and in 2017 on falling production by non-OPEC producers.
The 14-member cartel, which provides about one-third of the world’s crude, has squeezed competitors by keeping the taps open.
The world oil market see-sawed this week as traders tracked growing investor risk appetite, fluctuations in the dollar and stubborn supply glut worries.
“Oil prices are continuing their rollercoaster ride,” wrote Commerzbank analysts in an oil research note.
Crude futures began on the back foot on Monday, sliding as an increase in US drilling activity and a strong dollar reversed gains from last week’s better-than-forecast US jobs report.
A strong greenback makes dollar-priced commodities like oil more expensive for those using other currencies. That tends to weigh on demand and price levels.
Oil then rebounded Tuesday as OPEC forecast an easing of the global oversupply that has weighed on the market in recent years.
Traders bid up crude oil after Monday’s rout, in what some analysts said was due partly to a technical correction.
Sentiment also brightened on speculation over possible global central bank stimulus measures following Britain’s recent referendum vote to leave the European Union.
In its July report, the Organization of the Petroleum Exporting Countries said it expected the global supply glut to ease further this year and in 2017 on falling production by non-OPEC producers.
The 14-member cartel, which provides about one-third of the world’s crude, has squeezed competitors by keeping the taps open.
