Softer dollar helps Brent shrug off US “recession”

The softer US dollar has made it easier for Brent to shrug off the surprise contraction in the US economy. Brent remains on course for back-to-back weekly gains, as it keeps its head above the psychologically-important $100/bbl mark.

Oil benchmarks are attempting to halt a series of lower highs and lower lows registered since early June, with prices being pushed into a symmetrical triangle pattern suggesting that a breakout may soon be upon us.

The tightness evident in oil markets, with global demand yet to reach a full recovery even as supply constraints persist, still point to an upward bias for oil prices.

Oil markets will be paying close attention to the outcome of the next OPEC+ meeting, in light of US President Joe Biden’s recent request for Saudi Arabia to loosen the oil taps.

Still, any new OPEC+ deal aimed at further ramping up supplies is likely to be met with market skepticism, considering the supply constraints already evident within the alliance.