Oil prices fall on strong dollar, Brent near one-month low

TOKYO (Reuters) – Oil prices on Monday extended declines from the end of last week on the back of a stronger dollar, with Brent crude falling to its lowest in nearly a month.

Other markets dropped as investors were spooked by Friday’s U.S. payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations .

That drove the greenback higher, which puts pressure on oil as the commodity is priced in dollars.

Brent () was down 75 cents, or 1.1 percent, at $67.83 a barrel at 0033 GMT, after falling 1.5 percent on Friday.

U.S. West Texas Intermediate (WTI) crude () declined 66 cents to $64.79, after dropping 0.5 percent in the previous session.

An index of the dollar against a basket of currencies () rose to as high as around 89.38, approaching peaks reached on Friday, after the report showed U.S. jobs growth surged in January and wages rose, clocking up their biggest annual gain in more than 8-1/2 years.

Rising U.S. oil production is also pushing down prices, undermining attempts by the Organization of the Petroleum Exporting Countries (OPEC) to support prices.

Data from the U.S. government last week showed that output climbed above 10 million barrels per day in November for the first time since 1970, as shale drillers expanded operations after gains in oil prices last year.

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.