Home Gold News Oil prices rose on Friday on the back of a weaker U.S....

Oil prices rose on Friday on the back of a weaker U.S. dollar.

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Oil edged up on Friday as the dollar fell to an almost two-year low, although demand concerns stemming from rising coronavirus cases and U.S.-China tensions kept a lid on prices. The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually spurs buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies.

Crude prices are attempting to stabilize as expectations still remain high that Congress will be successful in delivering another pandemic relief package. Yesterday’s U.S. economic data showed that the economic recovery is struggling and pretty much guarantees more federal aid is coming. While the rise in infections has fanned fears of renewed government lockdowns, worries that oil demand could be hit have been exacerbated by tensions between the United States and China – the world’s top two oil consumers.

TREND : BEARISH

Time                                      :           24/07/2020

Pivot                                      :           41.44

Technical View                     :             SHORT BELOW 41.24

Target                                   :            41.04, 40.38, 39.86, 38.95

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