🛢Oil Prices Hit Multi-Week Highs Amid Dollar Dip and Trade Hopes

What’s Driving the Surge in Oil Prices?

Oil markets saw a sharp uptick today as:

• The U.S. dollar weakened, making oil cheaper for other currencies.
• US–China trade talks signaled potential thawing of tensions.
• Risk appetite increased among investors as equities rose globally.

This combined boost helped both Brent and WTI crude benchmarks notch multi-week highs.

Brent and WTI: Price Movements

• Brent crude: Surged above $67 per barrel
• WTI crude: Crossed $65 per barrel

These levels mark the highest since mid-April 2025, signaling a turnaround from recent stagnation caused by demand concerns and inventory builds.

Role of the U.S. Dollar and Market Sentiment

• A falling dollar index made oil more attractive to buyers holding other currencies.
• Global equity gains—especially post-London trade negotiations—have improved sentiment across risky assets including crude.

Geopolitical and Supply Factors at Play

• OPEC+ compliance remains high with no immediate plans to boost output.
• U.S. rig counts dropped marginally, tightening future supply expectations.
• Geopolitical calm in the Middle East has kept volatility subdued for now.

Impact on India: Fuel Prices & Trade Deficit

• Higher oil prices could pressure India’s import bill.
• Expect marginal increases in petrol and diesel prices at retail pumps.
• Rupee may face headwinds due to stronger dollar demand for crude purchases.