On Friday, oil prices were seen near 2016 highs; boosted by the weaker US dollar. The market will also be focusing the weekly report on US rig counts due to be released later in the day.
Prices for the North American West Texas Intermediate (WTI) crude rose 0.02% to $46.06 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude gained 0.07% to $47.80 a barrel on the London-based ICE Futures Europe exchange. Both benchmarks were seen rising to their highest level since November last year.
While crude prices were seen rising, the greenback continue to weaken in the past few sessions. The US dollar index weakened 0.35%. The weakened US dollar weighs on the crude prices, making oil cheaper in other currencies.
The oilfield services company Baker Hughes is expected to release its weekly report on the US ring count, following last week’s drop of 8.
A report released earlier by the Energy Information Administration (EIA) revealed that that crude inventories in the US climbed higher than expected in the last week, rising to an all-time high of 540 million barrels.
Major oil producers are currently producing crude near record levels, with some planning to increase their production further; which would weigh global oversupply of the commodity.