Oil rises for the first time in seven days as the US dollar weakens

Jessica Morris
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Spindletop Oil Well Centennial
The black stuff had come under pressure recently due to global growth fears (Source: Getty)

Oil snapped its biggest weekly drop in more than two months today, helped by foreign exchange rate movements.

The greenback slumped 0.2 per cent to $94.407 against a basket of currencies, making the dollar-priced commodity more attractive to foreign buyers, and helping crude shrug off a sharp drop in the previous six sessions.

Read more: IEA says global oil markets appear to be balancing

It came as sterling rose from a two-month low after campaigning for next week's EU referendum was suspended after the tragic death of MP Jo Cox.

Brent crude, the global benchmark, rose 1.6 per cent to $48 per barrel this morning. West Texas Intermediate crude, the US benchmark, swelled 1.2 per cent to $46.70.

Read more: 120,000 UK jobs lost from the oil price crash

"A slightly weaker US dollar is giving the commodities space a lift, thanks to UK sterling rallying from its lows on reduced Brexit fears ... markets also still digesting that more bearish Fed outlook," Mike van Dulken, head of research at Accendo Markets, said.

The black stuff had come under pressure recently due to global growth fears, as well as uncertainty ahead of the UK vote on 23 June. Economists, analysts and commentators warned the latter could tip Europe back into recession.

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