Oil prices gain as dollar declines

Gulf Today Report 

Oil prices jumped on Tuesday as dollar declines aiding commodities and crude inventories dropped in the United States. 

Brent crude futures for June delivery had risen by 66 cents, or 1%, to $67.71 a barrel as at 06:42 GMT while US West Texas Intermediate (WTI) crude futures for May delivery were up 70 cents, or 1.1%, at $64.08 barrel.

The decline in the dollar has made oil more affordable for holders of other currencies.

In a note, ING Economics said, "US dollar weakness continues to offer support to the commodities complex ... despite concerns over oil demand in certain regions."

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Libya's National Oil Corp (NOC) declared force majeure on Monday on exports from the port of Hariga and said it could extend the measure to other facilities because of a budget dispute with the country's central bank.

The disruption could cut Libya's oil output by 280,000 barrels per day (bpd), knocking production below 1 million bpd for the first time since October, ING said.

Meanwhile, India has recorded a tremendous increase in COVID-19  cases in the last week. Being the world’s third-biggest oil importer and consumer, the coronavirus situation has dampened optimism for recovery in global fuel demand.