Growing jobs in the US private sector led to the dollar rising on Wednesday.
With gains against the euro and yen, the dollar index advanced for a second straight session. Recent reports say that the US private sector added 213,000 jobs in January, beating estimates.
In morning trade, the dollar index grew 0.1% to 95.958. The euro fell 0.2%, with the European Central Bank expecting to hold off the European market tightening for at least a year.
NO RESPITE FOR CHINA
This Monday, oil prices had slipped following indications that crude production might rise further after US energy companies added rigs for the first time since 2019 began.
World’s second largest oil user China posted more signs of economic slowdown furthered the price fall.
International Brent crude oil futures slipped 0.2% to $61.50 a barrel on Monday morning, while US crude oil futures fell 0.5% to $53.43 per barrel.
In Baker Hughes energy services firm’s weekly report last Friday, US energy firms raised the number of oil exploration rigs by ten more to 862. This was a further indication of an output spike.
Till the year began, a boom in China drove oil consumption. The start of year saw it at over 100 million bpd.
It was only a few months ago that the Saudi Arabia-led Organization of the Petroleum Exporting Countries (OPEC) introduced supply cuts to tighten markets and regulate prices.