Oil prices rose in early Asian trade on Thursday, rebounding on a weaker U.S. dollar after falling around 3 percent or more in the previous session following a surprisingly large build in U.S. crude and distillate stocks last week.
“The weaker dollar is providing support for oil prices today. The direction of oil prices is governed by supply and the strength of the dollar,” said Jonathan Barratt, chief investment officer at Sydney’s Ayers Alliance.
The U.S. dollar index slipped against a basket of currencies on Thursday. A weaker dollar makes greenback-denominated commodities including oil cheaper for holders of other currencies.
