403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Rallying dollar hurts oil prices
(MENAFN- Arab News) NEW YORK: Oil fell more than 1 percent as a rallying dollar and profit-taking ahead of a long US holiday weekend cut short a two-day run-up in crude prices.
Heating oil a proxy play for diesel and gasoline slipped more than 1 percent as well on concerns of outsized US supply despite forecasts for a spike in driving this weekend and through Monday's Memorial Day holiday.
Worries that fewer US oil rigs were being idled after a broad rebound in crude prices since early April further weighed on sentiment. Drillers cut the number of US oil rigs in operation by just one this week the strongest sign yet that a nearly six-month slump in activity was ending data from oil services firm Baker Hughes showed.
US crude was down $1.12 or 1.8 percent at $59.60 a barrel by 1:22 P.m. EDT (1722 GMT). It was headed for a slight loss on the week snapping nine straight weeks of gains.
North Sea Brent oil a more widely referenced benchmark fell $1.07 or 1.6 percent to $65.47. Brent was on track for a 2.2 percent drop on the week.
The dollar traded at a near one-month high after US Federal Reserve Chair Janet Yellen said she expected the central bank to raise rates this year as the US economy was on course to rebound from a sluggish first quarter and as headwinds at home and abroad begin to wane. A US inflation report also indicated underlying price pressures that could prompt a rate hike.
A stronger greenback makes dollar-denominated commodities less affordable to holders of the euro and other currencies. Traders said oil was particularly vulnerable to profit-taking after the gains of the past two days in which Brent had risen 4 percent and US crude 6 percent.
Heating oil a proxy play for diesel and gasoline slipped more than 1 percent as well on concerns of outsized US supply despite forecasts for a spike in driving this weekend and through Monday's Memorial Day holiday.
Worries that fewer US oil rigs were being idled after a broad rebound in crude prices since early April further weighed on sentiment. Drillers cut the number of US oil rigs in operation by just one this week the strongest sign yet that a nearly six-month slump in activity was ending data from oil services firm Baker Hughes showed.
US crude was down $1.12 or 1.8 percent at $59.60 a barrel by 1:22 P.m. EDT (1722 GMT). It was headed for a slight loss on the week snapping nine straight weeks of gains.
North Sea Brent oil a more widely referenced benchmark fell $1.07 or 1.6 percent to $65.47. Brent was on track for a 2.2 percent drop on the week.
The dollar traded at a near one-month high after US Federal Reserve Chair Janet Yellen said she expected the central bank to raise rates this year as the US economy was on course to rebound from a sluggish first quarter and as headwinds at home and abroad begin to wane. A US inflation report also indicated underlying price pressures that could prompt a rate hike.
A stronger greenback makes dollar-denominated commodities less affordable to holders of the euro and other currencies. Traders said oil was particularly vulnerable to profit-taking after the gains of the past two days in which Brent had risen 4 percent and US crude 6 percent.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment