US Dollar Loses Ground As Crude Oil Advances On A Weekly Basis‍

The dollar suffered as expectations that the Federal Reserve could soon stop raising interest rates led to an increase in oil prices, while China continued to lag Covid Zero further behind.

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After recovering from an intraday setback, West Texas Intermediate trading near $70 per barrel. As the US dollar has dropped more than 1% this week, the US crude benchmark has increased by more than $3 per barrel. The weekly increase in oil prices comes after a sharp decrease over the previous five days when banking issues erupted.

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Oil is still on track to experience its biggest decrease in the first quarter since 2020, when the flu decimated demand. This decline has been caused by several factors, including strikes on French refineries, a probable American recession, and strong Russian flows notwithstanding Western sanctions. But, more investors are now betting that the Federal Reserve's tightening campaign is about to come to an end after this week's additional rate hike, which is hurting the US dollar and helping commodities with a dollar price.

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According to Warren Patterson, head of commodity strategy for ING Groep NV, "Russian supply is holding up better than predicted, and that's why the oil balance looks very comfortable in the short term." However, as Chinese demand rises, the international oil market market should become tighter in the second half, supporting higher prices.

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Goldman Sachs Group Inc., a seasoned commodities bull, asserted once more that crude will prosper this year as a component of a wider commodity rise as prices surged this week. The report stated that the fundamentals and telltale signs for oil remain optimistic.