Analysts attribute the recent strength in crude to the support it is receiving from a weak US dollar. The greenback has shed -2.90% in value against a basket of major currencies since its March peak amid fears that US President Donald Trump will be unable to push through his economic reform package.
A weak dollar spurs many investors to pull funds from foreign exchange, instead allocating it to commodities futures such as crude or gold instead. The weaker dollar also makes crude cheaper for countries importing the energy product. Technical analysts say Brent has found strong support around $50.00 per barrel with $52.20 presenting the immediate resistance. If prices break above, a move back to $54.00 looks likely. In focus today will be weekly US API inventory flow data, however, in the meantime Brent futures are currently trading just above $51.00.