MOSCOW: Oil prices on both sides of the Atlantic stalled its downslide and now look to regain the bid tone as the bulls find support from the latest comments from the Russian oil minister Novak.
Currently, both crude benchmarks trade modestly flat, with Brent at $ 51.32, while WTI hovers around $ 50.50 levels. Oil prices attempt a tepid-recovery after yesterday’s sell-off, as traders cheer fresh comments from Novak, noting that oil output freeze is needed and that he would put forth some proposals during his meeting with Saudi this weekend. However, it remains to be seen whether the black gold will be able to sustain the recovery, in wake of persistent broad based US dollar strength. A stronger USD makes dollar denominated commodity expensive for the holders in foreign currencies.
Oil slumped yesterday after China reported another jump in the country’s diesel and gasoline exports, refueling supply glut concerns and hence, weighed heavily on the commodity amidst a broadly higher US dollar. Looking ahead, attention turns towards the rigs count report for fresh insights oil prices.
