Analyst: A strengthening dollar will limit the medium-term gains in crude oil

ME News Report, April 2 (UTC+8), XS.com analyst Rania Gule pointed out in a report that crude oil prices are highly likely to break through $110 per barrel again in the short term. She stated that after recent remarks by Trump, traders are building positions in anticipation of further supply disruptions. Currently, the market has not fully priced in the risk of a comprehensive escalation of the Middle East situation, so the short-term upside risk is greater than the downside risk. However, the analyst’s medium-term outlook is more balanced, as the rekindling of Fed rate hike expectations could strengthen the dollar, thereby putting pressure on dollar-denominated commodities like oil. She added that the medium-term outlook for crude oil still depends on the global economy’s ability to absorb the impact of high interest rates. (Source: Jinshi)