Oil started to grow at the beginning of a new trading week

World oil prices moved to growth on Monday afternoon due to the weakening of the US dollar against its main currency competitors, as well as against the background of prevailing risk sentiment in the markets – investors continue to assess the prospects around demand.

The current quotation of Brent crude oil is $93.90 per barrel. It is worth noting that the trading session started at around $91.30, so we can see that oil is growing quite rapidly. WTI oil quotes are located at $87.60 per barrel (the daily minimum is $85.20).

The dollar index (the exchange rate against a basket of currencies of six US trading partner countries) fell by 1.07% to 107.84 points. The decline in the value of the US currency traditionally makes commodities, including oil, more affordable when purchased in another currency.

The growth of stock markets at the same time supports traders' appetite for risk, which is also favorable for commodity prices. The indices of Australia and Japan rose by 1%, the exchanges of Europe are rising on average within 1.5%.

Also, the topic of demand prospects remains in the focus of attention of market participants. The fact is that the recession risks associated with the tightening of monetary policy by world central banks have a negative impact on expectations around demand. In addition, the situation with coronavirus in China is also of concern, since China is one of the largest importers and consumers of petroleum products.