Oil up on subdued recession fears from positive US data

ANKARA 

Oil prices increased on Monday with the release of positive economic indicators from the US, the declining value of the US dollar, and a supply cut forecast from OPEC+ countries.

International benchmark Brent crude traded at $75.97 per barrel at 9.51 a.m. local time (0651 GMT), a 0.89% increase from the closing price of $75.30 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $72.02 per barrel, up 0.95% from the previous session’s close of $71.34 per barrel.

The US Labor Department’s data showed a 53-year low in its unemployment rate on Friday at 3.4%, easing recession concerns.

The US dollar index, which measures the value of the American dollar against a basket of currencies, including the Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, declined 0.13% to 100.865 early Monday.

A weaker dollar makes dollar-indexed crude oil cheaper for buyers using other currencies.

On the supply side, expectations of an agreement by the OPEC+ group on output cuts during its June meeting aided the price rise.

The group is set to meet on June 4. The OPEC+ group, led by Saudi Arabia and Russia, decided to make voluntary cuts of approximately 1.6 million barrels per day as of May, in addition to a production cut of 2 million barrels per day that has been in place since October.

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