Monday, prices of oil slightly recovered and held firm after the 2% decline recorded on Friday last week. The United States West Texas Intermediate crude futures closed at $62.17 per barrel - 0.2% or 11 cents higher compared to their previous settlement. The international benchmark, Brent crude, rose by 12 cents or 0.2% and settled at $67.23 per barrel.
Despite the latest recovery in oil prices, rapid growth in U.S. crude inventories continues to threaten oil prices, as well as the efforts led by OPEC to stabilize energy markets. U.S. drillers added 11 rigs in the week ending on April 6 to a total count of over 808 rigs – the highest level since March 2015.
On Monday, the United States dollar managed to recover and hold firm against its major currency rivals despite of the rising concerns over the possibility trade war between the United States and China which led the greenback to decline by approximately 0.4% on Friday. The dollar index climbed by 0.1% and settled at 90.189. Against the Japanese currency, the dollar managed to climb by 0.1% to 107.00 yen. Versus the euro, the greenback also managed to rise by 0.1% to $1.2272 EUR=.
Donald Trump’s announcement that he was going to impose additional $100 billion worth of tariffs on Chinese goods led to speculations and fears of a full-blown trade war between the U.S. and China, which can definitely hurt global economic growth. This explains the decline of the dollar on Friday.