Oil rises thanks to lower US dollar, but demand remains worrisome

Due to the fact that the US dollar has fallen relative to other leading currencies, there is an increase in oil prices, although this growth is restrained by concerns about slowing growth of global fuel demand in light of weak economic data from the world's largest oil importers, including China.

A weaker US dollar makes dollar-denominated oil cheaper for other currency holders and encourages price increases. Nevertheless, the factors constraining growth were signals of uncertain economic activity in the United States and China, the leading countries in terms of global oil consumption.

According to Vandana Hari, founder of the oil market analysis service provider Vanda Insights, there is a fluctuation in prices during the day, Brent and WTI futures have been in a rather narrow range since Thursday.

Since the main parameters of supply and demand remain predominantly stable, the focus of economic attention is kept on the oil market, Hari also noted.

In addition, she added that the bulk of the unfavorable demand outlook could be considered settled, so any subsequent downward impact may be slow-acting.