Oil edges higher, but gains capped on excess supply and strong USD

By FXStreet FXStreet (Mumbai) – Oil prices advanced slightly on Tuesday, but gains were capped on a strong US dollar and concerns of excess supply.

As of writing, Brent Jan futures were up 12 cents or 0.26% at USD 44.73/barrel. WTI futures were up 20 cents or 0.44% at USD 41.84/barrel.

Prices are trading almost unchanged on the weekly basis as cautious tone persists ahead of the OPEC meeting scheduled on Friday, OPEC’s biggest producer Saudi Arabia, which heavily influences the group’s policy, is widely expected to keep output steady despite declining prices.

Meanwhile, the USD index appears to have settled above 100.00 levels ahead of Friday’s non-farm payrolls data, which is expected to show the economy added more jobs, albeit at a slightly more modest rate in November. However, the USD index could run higher ahead of Friday’s NFP if the US ISM manufacturing and non-manufacturing indices along with ADP report show a healthy addition of jobs.
For more information, read our latest forex news. …read more

Source:: FX Street