Oil finds relief in weaker dollar as equities recover

Bloomberg

Oil shook off some of the fears that had rattled the market to extend gains above $62 a barrel as the dollar weakened and global equities rebounded from a rout.
Futures rose as much as 1.4 percent in New York after advancing 4.2 percent last week, propped up by a relief rally that helped US equities to their best week in five years. Gains were also driven by a weaker greenback, which boosts the allure of commodities priced in dollars. US drillers lifted the number of rigs exploring for oil to the highest since April 2015, though only 51 rigs have been added so far in 2018, down from 72 a year earlier.
Crude has clawed back some of its losses following a risk-asset rout earlier this month, but it’s still struggling to recover to its recent high in January as concerns continue to loom over a resurgence in US output. Meanwhile, OPEC and its allies including Russia are looking at ways to “institutionalise” their cooperation beyond the end of a supply-cut deal later this year.
“Prices are likely to continue their recovery as fundamentals will strengthen in coming months,” said Jan Edelmann, an analyst at HSH Nordbank AG in Hamburg. “We now see an excellent opportunity for investors to enter the market.”