USD is buying oil at a slow pace – Danske Bank

The US bought crude for its strategic reserves last week for the second straight week, Danske Bank's FX analyst Jens Nærvig Pedersen reports.

Oil market to continue struggling near-term

"On the one hand, the US has started to support the oil market following the recent slump in prices and pause in buying, but on the other hand, it is buying at a slow pace given the current low level of prices."

"The recent signs of weakness in the US economy coupled with the upcoming OPEC+ output hike and trade policy uncertainty have fed bearish sentiment in the oil market and if US buying does not pick up the oil market will likely continue to struggle near-term."