Oil hovers around $50 on fragile demand outlook
Despite the dollar's continued retreat in value, which makes commodities denominated in the United States currency cheaper for overseas investors, prices of crude edged lower on Monday. Uncertainty on whether major producers outside of North America would prolong the current output cap quotas has fueled downward pressure, alongside a lack of signals demand growth could pick up this year and next. Meanwhile, companies extracting unconventional crude have improved efficiency and the number of rigs in the US is on the rise.
West Texas Intermediate oil for shipment next month shed 0.55% to $48.51 per barrel at ICE Futures Europe at 9:42 am CET. At the same time, Brent for settlement in May declined 0.23% to $51.64 for one barrel. The euro added 0.22% to buy $1.0764 and the pound ticked 0.11% up to $1.2408 (both 9:54 am CET).