On Friday, crude oil futures rose over 2%, as the greenback remained pressured by the Federal Reserve's most recent policy statement.
On the New York Mercantile Exchange, U.S. crude oil for delivery in May traded $1.03 or 2.26% lower to $46.56 a barrel during European early afternoon trade. On Thursday prices plunged $1.12 or 2.40% to settle at $45.53. Futures were likely to find support at $44.77, Thursday's low and resistance at $49.47, the high from March 13.
Prices for the international benchmark of crude plunged steeply on Thursday, after Kuwait's oil minister Ali al-Omair said his country has agreed to keep output levels steady. The minister indicated that current market conditions have forced OPEC to maintain its production level. While al-Omair said Kuwait "will be very happy if other producers cut output," he added that the world's 10th largest oil producer can't afford to "lose its share in the market."
On Wednesday the Fed indicated that U.S. economic growth has moderated and that interest
rates will rise at a slower pace than previously forecast. This pushed the dollar lower.
The Fed also downgraded its forecasts for growth and inflation, adding that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.
On the ICE Futures Exchange in London, Brent oil for May delivery climbed $0.43, or 0.80%, to hit $54.87 a barrel, with the spread between the Brent and the WTI crude contracts stranding at $8.31.
