Brent reclaims $80 handle amid hopes for Fed pause

Oil benchmarks have been reinvigorated by the ailing US dollar as markets ramp up hopes that the Fed’s rate-hike cycle will soon come to an end.

Supply disruptions in Libya and Nigeria, along with lower Russian shipments, have added to Brent’s latest surge, even allowing oil bulls to shrug off concerns over China’s slowing economy for now.

Brent is trading back above the psychologically-important $80/bbl mark for the first time since late April, and is on course for a third successive week of gains.

Still, Brent may find it tough to reclaim the $90/bbl handle, with its 200-day moving average standing in its way, until demand-side fears can continue fading into the rearview mirror.