Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Oil gives up gains as weak dollar offsets supply concerns

05 February 2016, 14:09

Singapore - Crude prices were mixed Friday in Asia despite a weaker US dollar as concerns over a global supply glut persisted and hopes diminished of a near-term deal by major petroleum producers to cut output.

At around 0545 GMT, US benchmark West Texas Intermediate for delivery in March was seven cents or 0.22 percent higher at $31.79, while Brent crude for April was six cents or 0.17 percent down at $34.40.

Both hit higher levels earlier in the day due to a weaker greenback.

Shailaja Nair, from energy information provider Platts in Singapore, told AFP that crude prices have received support from the flagging dollar.

"The dollar will always have an add-on effect on crude oil prices... The volatility in the dollar and the volatility in crude have been like a constant for the past two to three weeks now," Nair said.

Also Read: Shell expects huge profits decline on oil price plunge

Oil is traded in dollars and a softening of the US currency makes crude cheaper for holders of other units, increasing demand for the commodity.

She added that the upcoming Lunar New Year holiday weekend has also contributed to a lull in the market, but the price rise is unlikely to last should market fundamentals remain the same.

"The demand is not growing... the glut will only go if the production is cut and we have seen no indications of that," Nair said.

Despite speculation of a potential deal by producers to cut output, analysts say that such a deal must involve the market's major players.

"With the absence of large producers like Saudi Arabia and Iran, I don't see much of a point in the other OPEC members trimming output. Any gaps will be quickly filled by other producers to increase market share," Bernard Aw, a market strategist with IG Markets, said in a note.

A price rebound last week driven by talk of possible coordination between Russia and OPEC to slash production petered out after traders brushed aside speculation.


Tags oil price

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...