Dollar decline and increased US crude oil exports support oil markets

Due to record U.S. crude oil exports, as well as state refineries operating at higher levels for this time of year, oil prices are rising, Reuters reported.

Since the strengthening of the dollar has recently become a significant factor inhibiting the growth of the oil market, the weakening of the US currency added support.

Due to the decline in the US dollar, oil becomes cheaper for holders of other currencies.

Crude oil exports rose to over 5 million barrels per day, the highest ever. At the same time, US net imports of crude oil were reduced to the lowest level in history.

According to John Kilduff, a partner at Again Capital in New York, despite an average rise in crude inventories due to the export market, this turned into a bullish report.

The Organization of the Petroleum Exporting Countries stunned markets with a larger-than-expected output cut earlier this month. Oil analysts expect oil supplies to decline in the coming months.

According to JP Morgan analysts, it is the presence of tankers that are willing to transport Russian oil, rather than global fundamental supply and demand factors, that will have a big influence on the price of oil until 2024.