A weaker dollar has helped oil erase some of its earlier losses. The dollar, which has been surging in price over the last month, has now started to decline. Last week, the dollar sank, and the trend continues this week with the dollar dropping against 14 of 16 major currencies.
Oil stocks have seen a rise in early Monday morning trading as investors are looking to commodities. Saudi Arabia has announced that the country has boosted its oil production to nearly 10 million barrels a day.
Oil prices are up by 1.1% to $47.06 a barrel, according to West Texas Intermediate’s metrics.
Oil prices dropped earlier in the month due to large oil outputs and inventories. Inventory levels for oil are at a 30-year high. Experts state that the price of oil is unlikely to hit $100 a barrel in the near future.
Saudi Arabia has stated that the country is able to meet all demands at the moment and sees no reason to expand production levels any further. United States oil production reached 9.42 million barrels per day last week, with inventories reaching 458 million barrels.
While oil prices are slightly up, prices are not expected to reach the $100 a barrel mark or even the $70 a barrel mark in the near future.
