A weak dollar is the only support for oil and can increase its prices, according to analysts polled by CNBC.
Like most commodities that are traded internationally, oil is denominated in dollars. The cheaper the dollar, the higher the product prices set in it. The us currency is likely to remain weak until 2021 due to the policy of the Federal reserve system (fed) to support the economy (keeping interest rates low), experts say. Analysts see a weak dollar as a chance to boost crude oil prices.
According to the founder of the energy consulting company Vanda Insights, Wanda Hari, the efforts of us President Donald trump to support US stock markets will also help. They will include a variety of monetary and fiscal incentives.
Ulf Lindahl, chief investment officer of currency risk management company AG Bisset, is confident that the dollar will fall by more than a third (36 percent) against the Euro over the next year.