Oil steadies as China's demand outlook, dollar take center stage
BNN Bloomberg
Oil steadied as investors weighed the outlook for Chinese demand, while a weaker dollar made commodities more attractive for buyers.
West Texas Intermediate held above US$80 a barrel after ending little changed on Wednesday as earnings from U.S. companies streamed in. The number of virus-related deaths and severe cases at hospitals in China is now 70 per cent lower than peak levels in early January, authorities said late on Wednesday. That should aid a recovery in mobility and fuel consumption in the biggest oil importer.
Crude has also benefited from a slump in the U.S. currency, with a gauge of the dollar slumping to a nine-month low on Wednesday. The drop — which makes raw materials cheaper for overseas buyers — has been driven by expectations that a pause in the Federal Reserve's rate-hike cycle may be on the horizon.
