Oil prices rose on Monday, supported by a weaker US dollar that boosted demand in the global market, with Brent crude hovering near $67 per barrel and West Texas Intermediate (WTI) edging close to $65.
Brent crude gained 0.37% to trade at $66.58 per barrel, up from $66.33 at the previous session’s close. Similarly, WTI rose by 0.26% to $64.71 per barrel from $64.54.
The gains came as investors took advantage of last week’s price declines, which marked the steepest weekly drop since March 2023 following an easing of geopolitical tensions in the Middle East. The weaker dollar has helped support prices by making oil more affordable for buyers using other currencies, thereby improving demand.
The dollar index slipped 0.3% to 97.2 on Monday, its lowest level in three years, pressured by continued criticism of the Federal Reserve by US President Donald Trump. Analysts noted that the dollar’s depreciation is likely to sustain near-term demand for oil.
However, gains remain capped by reports that the OPEC+ alliance plans to increase output by 411,000 barrels per day in August. The group, which includes Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, is expected to finalise its production targets at its meeting on July 6, marking the fifth consecutive month of supply increases as members continue to unwind voluntary production cuts.
Meanwhile, concerns over demand in China, the world’s largest crude importer, continue to weigh on sentiment. China’s manufacturing Purchasing Managers’ Index (PMI) for June came in at 49.7, slightly above expectations but still indicating a contraction in factory activity.
