Crude rises as stocks recover, dollar flounders

Bloomberg

Oil posted its first weekly increase since last month as rebounding equity markets eased concern about economic growth and a weakening dollar boosted the allure of commodities priced in the US currency.
Futures in New York rose 0.6 percent and gained 4.2 percent this week. The greenback touched a three-year low earlier in the day before edging higher, though the increase wasn’t enough to wipe out the previous four days’ losses.
Equity markets recovering from recent routs boosted confidence in bullish energy demand forecasts.
“Oil prices were strong because the stock market stabilized,” said Phil Flynn, senior market analyst at Price Futures Group. “As long as we are going to see stock market stability, oil prices are going to look pretty good.”
New York oil futures started 2018 with the best January in more than a decade, but all those gains were wiped out last week as collapsing equity markets stoked concern about economic growth. At the same time, US shale production has continued to escalate, imperiling the Organization of Petroleum Exporting Countries’ efforts to drain a global glut.