Importers of crude oil have now benefitted from a weak US dollar that hit its lowest since September 2018. This weakening of the dollar offset low demand experienced from the rising COVID-19 cases.
Crude prices remained steady on July 24 as most of the crude-importing countries gained from the weak dollar. They exploited the weakening to acquire more crude volumes which, in turn, offset corona-related, low global oil demand. The international benchmark Brent crude was exchanging at $43.34 per barrel at 0620 GMT; which represents a 0.07% rise after closing July 23 at $43.31 a barrel.
West Texas Intermediate (WTI), an American benchmark, was set at $41.02 a barrel; simultaneously for a 0.12% drop after it ended the previous market session at $41.07 per barrel.
The United States dollar index that measures the value of the US dollar against many other major currencies; including the Japanese yen, Canadian dollar, Swiss Franc, British pound, and Swedish krona, fell to $94.59 on Thursday. That level is its lowest since September 2018.
The plunge in the value of the dollar is giving the oil-importing countries a chance of buying more crude oil at cheaper dollar prices. That phenomenon is changing market supply and demand dynamics in support of higher crude oil prices.
Nevertheless, the global oil demand remains considerably low as a result of the massively increasing number of global COVID-19 cases; that surged above 15.5 million late Thursday, according to Johns Hopkins University data.
The United States has now recorded over four million coronavirus cases; which is followed by Brazil with around 2.3 million cases. India is the third highest with about 1.3 million cases.