11.2 C
New York
Saturday, October 23, 2021

U.S. oil extends decline, weighed down by dollar, rising output

U.S. oil extends decline, weighed down by dollar, rising output© Reuters. Sign is pictured of Mexico’s national oil company Pemex’s refinery in Salamanca

TOKYO (Reuters) – U.S. oil slipped on Tuesday, extending losses into a second session, as a strengthening dollar sapped demand for crude, while rising U.S. output helped dampen prices.

U.S. West Texas Intermediate crude futures () were 13 cents, or 0.2 percent, lower at $65.43 at 0027 GMT. On Monday, they fell 58 cents, or 0.9 percent, to $65.56 a barrel.

Brent crude futures (), the global benchmark, were yet to trade. The contract for March delivery settled down $1.06, or 1.5 percent, at $69.46 a barrel on Monday.

Prices are still heading for a fifth straight monthly gain.

The rally in oil prices had recently been fueled by the U.S. dollar’s six straight weekly slides. The greenback is down 3 percent so far this month. ()

Oil is priced in the U.S. currency, so a falling dollar can boost demand for crude from buyers using other currencies.

The had been below $90 since Jan. 24, falling below $89 on Friday. But the currency has rebounded since then to around $89.37, which has weighed on crude prices.

Investors are bracing “for the upcoming refinery maintenance season amid a strong USD,” ANZ Research said in a note, which also pointed to rising inventories as U.S. shale producers continue their battle with OPEC.

U.S. production is already on par with Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries. Only Russia produces more, averaging 10.98 million bpd in 2017.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles