On Tuesday, Oil prices have raised above 3%, and it is expected the United States will make 2 trillion dollars’ deal on a coronavirus aid package that could dull the economy due to COVID-19. Moreover, it even favors oil prices and supports the demand in the market.
For May, Brent Crude oil raised to 22 cents for trade at 27.27 dollars per barrel and another side; West Texas Intermediate Crude could be raised to 65 cents at 24 dollars per barrel.
The Senior analyst at broker ONADA, Edward Moya, said that oil is on the way higher on the back 0f weak dollar that is from Fed’s unprecedented calculations.
WTI (West Texas Intermediate) crude oil’s volatility would remain high, but traders shouldn’t get surprised in case if that rally got faded.
It is expected that the United States’ dollar would be lowered in case if they grow their supply cash. The index of the dollar will be more weaker by 0.5% that calculates the greenback against six significant currencies on Tuesday.
Oil prices are boosted by a weaker greenback, and other buyers will pay less for crude oil in other currencies.
Crude oil prices are under pressure because of the epidemic coronavirus that has strictly stopped the movement for motor and aviation fuel due to lockdowns, halted airlines, which in turn reduce the crude demand.