On Friday the price of oil jumped back again in electronic trade. The rebound came after two days of serious losses. Yet, a number of analysts still project a weaker short term performance.
In Asian trading time US Benchmark crude oil for April delivery rebounded by 0.4% gaining 39 cents to trade at $93.23 per barrel. Yesterday during the New York Mercantile Exchange trading session, the contract lost $2.38. Friday’s gain reduced the price decline.
London-traded Brent crude for delivery in April also advanced. The future contract rose by 0.5%, adding 54 cents to hit $114.07 per barrel. On Thursday, the same futures lost $2.07.
Back on Wednesday, Nymex oil traded at $96.66 per barrel, while Brent was at $117.52 a barrel.
The gains this Friday came after a decline in the US dollar. Late Thursday the ICE dollar index dipped from 81.377 to 81.305. Yet, the index remained above the 81.074 level recorded on Wednesday.
Dollar-denominated commodities like crude oil tend to benefit from declines in the US currency. Holders of other currencies find oil less expensive when the greenback weakens.
The technical support levels of Nymex and Brent crudes seen by some analysts have been pushed by the small recovery.