On Thursday, crude prices surged, powered by a weakening greenback, though revenues were capped by plentiful supplies as well as inventories notwithstanding an effort by OPEC and other crude producers to cut production and prop up the market.
Brent crude futures 0LCOc1 hit $55.59 per barrel, ascending 0.93% from their last close. American West Texas Intermediate crude futures CLc1 reached $53.22 a barrel, surging 0.89%.
Traders told that the surge was mostly caused by a weakening greenback, which has lost 3.9%in value since its January high. Since crude is traded in dollars, a cheaper evergreen buck, makes crude purchases less costly for countries, utilizing other currencies, thus spurring demand.
However, crude price revenues were capped by data from the US Energy Information Administration, which revealed a 2.84 million barrels surge in commercial oil inventories to 488.3 million barrels, which add to a 6.3% surge in American crude output since the middle of the previous year to 8.96 million barrels per day.
