Oil Falls On Supply Glut And Strong Dollar


NEW YORK, Sept 18 (Reuters) - Crude oil fell on Thursday, pressured by ample supply, concerns about demand growth and a stronger U.S. dollar.

Traders pinned much of the fall on the U.S. dollar's rally to its highest in more than four years against a basket of currencies. The dollar drew support from a fall in U.S. jobless claims and Federal Reserve interest rate forecasts that were higher than those predicted in June.

The decline in the global benchmark Brent price was limited by a drop in Libya's output and talk of OPEC production cuts. Brent hit a 26-month low on Monday after data showing a slowdown in China's factory output raised demand concerns.

A stronger dollar makes dollar-priced commodities such as oil more expensive for buyers using other currencies.

"I think currencies are the focus," said Richard Ilczyszyn, chief market strategist and founder of iitrader.com LLC in Chicago. "The bottom line is that with the stronger dollar and dollar index basket rally... you can just take 10 percent off the top of commodity prices across the board. With all the geopolitical risk escalating overseas, oil should be popping. But (the falls are) all currency as far as I'm concerned."

Brent fell $1.27 to settle at $97.70 a barrel. Prices have declined around 15 percent from a nine-month peak of $115.71 reached in June.

A setback in Libya's output, which has fallen by about 200,000 barrels per day, has put threats to supply higher on investors' list of concerns.


View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Coordinator, Pipeline Construction
Expertise: Project Management
Location: Spring, TX
Project Manager
Expertise: Project Management
Location: Kennesaw, GA
Senior Project Manager
Expertise: Project Management
Location: San Francisco, CA
search for more jobs

Brent Crude Oil : $50.56/BBL 0.15%
Light Crude Oil : $47.7/BBL 0.70%
Natural Gas : $3.05/MMBtu 1.32%
Updated in last 24 hours