Oil prices rose 1% on Friday morning, Report informs, citing the auction data.
Investors are gradually returning to risk, and the dollar is weakening, which is favorable for the cost of this type of raw material, but by the end of the week, prices could fall by up to 9%.
The price of May futures for Brent crude rose by 1.1% to $75.52 per barrel, April futures for WTI increased by 1.14% to $69.13. Weekly declines for both brands could reach 8.7% and 9.8% respectively, the biggest weekly decline since December last year.
The rise in oil prices is supported by a number of factors, including corrective dynamics, the return of traders to risk and the weakening of the dollar. The dollar index (the exchange rate against a basket of currencies of six US trading partners) fell by 0.26% to 104.15 points. The depreciation of the dollar supports the demand for commodities, including oil, making them more affordable when buying in another currency.
Last week, there was noticeable volatility due to traders' concerns about the banking sector, which spilled over from stock markets, including commodity markets. Departure of traders from the risk contained the price of oil and copper. Now the stock markets are gradually recovering.
Concerns about the sector followed after the closure of several banks in the US, which affected the country's banking sector, and then the volatility spread to the European market, where the shares of Swiss Credit Suisse sank noticeably . Investors feared that the tough policy of central banks had a negative impact on banks. The authorities intervened in the situation, providing a number of supportive measures, which somewhat eased fears, but oil prices could not restore losses.