Weak fuel demand despite data indicating a recovery in the global economy has kept crude oil pegged at US$71 per barrel. This marks a stop to four consecutive weeks of oil price hike. The weakening dollar has made oil an attractive option for investors, pushing up oil prices as they buy contracts as an inflation hedge to offset a decline in the dollar. Players anticipate a further fall in oil prices this week on speculation that US fuel stockpiles will increase due to weakening demand.
Brent crude for August settled at US$71.2 on London's ICE Futures Europe exchange.