Crude oil futures closed higher Thursday (May 19) on a weak dollar. In addition, the forecast that Chinese oil demand will begin to recover when Shanghai ends the lockdown measures on June 1.
- WTI crude futures were up $2.62, or 2.4%, at $112.21 a barrel.
- BRENT crude futures were up $2.93, or 2.7%, at $112.04 a barrel.
Crude oil contracts recovered in response to forecasts that demand for oil in China will increase. The city of Shanghai plans to end lockdown measures on June 1 after no confirmed cases of COVID-19 have been reported. This is a milestone Shanghai authorities have set as the basis for beginning to ease the lockdown measures.
Shanghai has begun to allow some stores to resume operations. These include department stores, supermarkets, pharmacies, and hair salons, which have been urged to run these stores properly and limit the number of users to control the spread of COVID-19.
Meanwhile, a weaker dollar has made oil contracts cheaper for investors holding other currencies. The dollar index was 1.05% lower against the six major currencies in a basket of currencies at 102.7240.
The oil deal is also favored by the fact that the European Union (EU) is preparing to impose sanctions on Russian oil and will hold a summit on May 30-31 to discuss the deal.
The Spot Market is Open
Friday, May 20, 2022
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 10.15 | 110.98 | -1.23 | -1.10% |