LONDON: World oil prices struck 2016 high points this week as a weaker dollar attracted buyers to a market struggling to overcome a global supply glut.
Dollar-denominated oil has become more attractive for buyers of rival currencies despite lingering concerns about excess output, thanks to the US unit falling heavily, particularly against the yen.
The dollar’s fall comes as the US Federal Reserve held interest rates unchanged at its policy meeting on Wednesday, signalling it was in no hurry to raise borrowing costs.
The dollar has since fallen sharply against the yen after the Bank of Japan decided against additional stimulus measures for the struggling Japanese economy.
On Friday, the Brent oil contract reached $48.50 a barrel — the highest level since early November.
US benchmark West Texas Intermediate (WTI) hit a near six-month peak at $46.63.
Brent is meanwhile on course for its best monthly gain since May 2009, noted David Cheetham, analyst at trading firm XTB, on the final trading day of April.
“The 22 percent rise so far in April has seen the market move back above the $48 handle for the first time since early November,” he added.
