Oil Steady on Subdued Dollar

Oil Steady on Subdued Dollar
Oil Steady on Subdued Dollar

Oil prices were little changed on Wednesday amid subdued movements in the dollar, and as investors waited for more inventory data for more clues on demand trends.
Brent crude futures rose by one cent to $83.70 a barrel, after gaining 3.3% in the previous session, reported.
WTI crude futures climbed by 15 cents to $77.29 after jumping 4.1% in the previous session.
Oil benchmarks are expected to retain support after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than markets had expected, while the latest data showed US crude inventories fell despite earlier expectations of a climb.
"The improved risk sentiment in the aftermath of Fed Chair Jerome Powell's comments, along with a weaker US dollar, seem to be tapped on for some upside in oil prices, after seeing a lackluster performance since end-January," said IG's market analyst, Yeap Jun Rong.
"The reservation is that the overnight downside reaction in the US dollar has been more measured as compared to before," said Yeap, adding that any continued recovery in the dollar could still serve as a headwind for oil prices.
The dollar index was down slightly on Wednesday, extending losses after Powell's comments on Tuesday, making oil cheaper for those holding other currencies.

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