Oil prices rise amid lower dollar, supply fears

Oil prices rose on Friday, amid the dollar’s decline and continued supply worries, but fears of recession and the outbreak of the Corona virus in China limited the price hike.

According to “Reuters”, Brent crude futures rose $1.84, or 1.9 percent, to $96.51 a barrel by 0740 GMT. The contract is heading towards recording a weekly increase of more than 0.5%

US West Texas Intermediate crude futures also increased by $1.94, or 2.2 percent, to $90.11 a barrel, and are heading for weekly gains of more than 2%.

The rise in the two decades comes in light of the dollar’s decline, as the dollar’s weakness enhances the demand for oil, which is less expensive for holders of other currencies.

While demand concerns affect the market, supplies are also expected to decline with the start of the expected European embargo on Russian oil and the decline in US crude stocks.

Fears of a recession in the United States, the world’s largest oil consumer, grew on Thursday after Federal Reserve Chairman Jerome Powell said it was “too early” to consider suspending interest rates.

On Thursday, the Bank of England said it believed Britain had entered a recession and that the economy might not grow for another two years.

Sentiment was also affected after China kept its tight restrictions to combat COVID-19, following the highest increase in infections since August on Thursday.