In sync with rising oil prices, Colombia’s peso has gradually regained value against the US dollar that could sink below COP2,400 in the coming days.The American currency had a recorded an average of COP2,419.36 at the start of this week, losing almost 10% of its value against the peso since mid March when the dollar hit COP2,680.
If the trend continues, the currency will lose the stability that it had recently sustained. Analysts had suggested just last month that the dollar could reach a high of COP3,000 by September, by indication of the previously increasing value which almost broke the COP2,700 mark.
The maximum that the dollar reached during trading on Monday was COP2,460 and the minimum was COP2,405.20, according to the Colombian Stock Exchange.
Oil prices also dropped lower this Monday in New York, due to profit-taking after the increase in recent weeks, the situation in Yemen, and persistent fears of oversupply.
The price of a barrel of “light sweet crude” for June delivery closed lower by 16 cents, at $56.99 USD on the New York Mercantile Exchange (Nymex).
Brent Crude oil fell on the global benchmark index by 45 cents to settle at $64.83 USD a barrel for June delivery on the London market.
Consulting firm Frost & Sullivan’s Director of Business Development, Oil and Gas Carl Larry said that there were little changes in the fundamentals to move the market in one way or another, and that investors were taking profits from the earnings of last week, according to Colombian news source Pulzo.
“The West Texas Intermediate (WTI) continues to generate at least some buying interest despite the record of the American oil reserves, which will probably continue to rise,” commented Tim Evans, Energy Futures Analyst at Citi Futures.
The WTI — also known as Texas light sweet — is a grade of crude oil used as a benchmark in oil pricing.
On the supply side, oil production in the US has declined slightly in three of the last four weeks, but still remains around the region of nine million barrels a day.