Oil prices rise as dollar falls

On Monday [June 6] morning, global oil prices are rising, supported by a weakening dollar and rising Saudi Aramco prices, according to trading data.

August Brent Crude Oil futures increased by 0.6 per cent to $120.44 per barrel, while July WTI futures increased by 0.63 per cent to $119.62, Moscow-based Prime reports.

The dollar's exchange rate against the yen is down 0.17 per cent, while it is down 0.1 per cent against the euro. The weakening of the dollar boosts demand for commodities, including oil, which becomes more accessible to investors who own another currency in this case.

Markets are also assessing the news that Saudi Arabia's state-owned oil and gas company, Saudi Aramco, has raised its July oil prices for Asia. According to media reports, a $2.1 increase in the price of Arab Light for Asian buyers was greater than the expected $1-1.5 increase.

The start of the summer season boosts expectations for oil demand. "The peak demand season has arrived," Chen Shuxian, an analyst at Shanghai-based Cinda Securities Co., told Bloomberg.

According to the expert, the summer season of road trips in the United States and Europe will maintain a high level of consumption, and demand from China will recover following the relaxation of viral restrictions.