© Stocksak. FILE PHOTO – Storage tanks can be seen at the Petroineos Ineos petrol refinery, Lavera, France, on March 29, 2022. REUTERS/Benoit Tessier
By Laura Sanicola
(Stocksak – Oil prices rose in early Asian trade on Thursday, after rising more than 3% in previous sessions. This was driven by record exports as well as a weaker U.S. Dollar.
Futures rose 0.3% to $95.94 a bar by 0015 GMT. U.S. West Texas Intermediate oil (WTI) rose 19 cents or 0.2% to $88.10.
According to data from the U.S. government on Wednesday, crude oil stocks rose by 2.6 million barrels last Week. Crude exports increased to 5.1 Million barrels per day, the highest ever.
Traders attributed the rise in exports to the widening WTI Brent spread, which was at more that $8 per barrel as of Wednesday’s trade.
As the dollar’s weakness has been a significant factor in limiting oil market gains, it also provided support. A weaker dollar makes greenback-denominated crude less expensive for other currency holders.
A Bloomberg news report also reported that prices rose following a report by Bloomberg. It said that the United States of America (USA) and the European Union would likely agree to a looser policing cap at a higher price than originally envisioned. The report cited people familiar with this matter.
Next month, Europe will ban oil imports from Russia. It will also restrict Russian shippers from the global shipping industry.