Oil Prices Hold Gains After Sharp Jump on Dollar’s Slide

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Crude prices were little changed in early trading Tuesday after rising more than 5% Monday.

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Mario Tama/Getty Images

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Oil prices were little changed early Tuesday after jumping more than 5% at the start of the week as traders took advantage of a decline in the dollar to snap up futures.

Brent crude, the international benchmark, was at $106.29-a-barrel. West Texas Intermediate, the US standard, was at $102.75.

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While prices had dipped back below $100 on concerns that a global economic slowdown is approaching—down from more than $120 a month ago—recent moves suggest the decline may not be a permanent trend.

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Oil contracts, priced in dollars, became cheaper for overseas buyers as the US currency slipped back over the past week. The dollar index, a measure of strength against a basket of currencies, is down about 1% over the past five days. It has still advanced more than 15% this year.

Worries persist that energy supplies will remain tight after Russia, one of the biggest exporters, invaded Ukraine earlier this year. President Joe Biden visited Saudi Arabia last week, but failed to come away with an agreement to boost crude production.

The steady climb of oil prices—up more than 50% in the past year—has bolstered the shares of energy firms, particularly those focused on exploration. Billionaire investor Warren Buffett is building a stake in Occidental Petroleum,
(ticker: OXY) announcing Monday it had added $100 million to his investment last week. He now holds almost 20% of the largest operator in the Permian Basin in the US

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Credit: www.marketwatch.com /

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