The price of Brent crude oil rose yesterday above 124 USD/barrel, following unexpected drop of US crude stocks and the devaluation of the US dollar, Mediafax reports. The weak USD prompted investors migrate towards high-risk assets, adds the source.
The US currency fell to a three-year low against a basket of reference currencies, which made USD-denominated assets and merchandise become more interesting for the investors that use other currencies.
The price of Brent crude future for June had picked up 74 cents by 08.14 AM (Bucharest time), to 124.59 USD/barrel. The reference quotation on US market advanced by 71 cents, to 112.16 USD/barrel.
A rally on equities fueled investors’ appetite for commodities, with Asian markets reaching a peak in three years Thursday, while the three reference indices of Wall Street rose by a maximum 2.1 pc. According to Reuters analysts, the price of Brent crude might return to this year’s peak of 127.02 US/barrel, registered on April 11, while the US market reference might reach 113.46 USD/barrel. At that time, the April peak of Brent crude was the highest quotation in the last 32 months.