LONDON: Oil prices hovered below $84 a barrel on Wednesday as weak equities and a stronger dollar offset upbeat sentiment fuelled by a resumption of European air travel, while investors awaited key US government stocks data.
Oil inventory data from the Energy Information Administration (EIA), due at 1430 GMT, will provide the latest demand indication from the world’s largest energy user. US June crude futures fell 5 cents to $83.80 a barrel at 1217 GMT, still $3 below an 18-month high reached on April 6.
ICE Brent for June rose 48 cents to $85.28. Oil erased earlier gains as European stock markets turned lower and the US dollar firmed against a basket of currencies. A stronger dollar makes commodities more expensive for those holding alternative currencies.
Flight bans related to an ash cloud caused by an Icelandic volcanic eruption were lifted on Tuesday, alleviating concerns some investors had over the impact the disruptions would have on fuel demand.
Source The News
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