Oil Down About 3% Again On Dollar, Awaits Supply Data
NEW YORK, May 27 (Reuters) - Oil prices fell by up to 3 percent for a second straight day on Wednesday as a resurgent dollar weighed on the market ahead of U.S. inventory data.
Gasoline and heating oil fell more than 2 percent each, extending the slide across the fuels complex, on bets that U.S. refineries will be operating at full swing with the end of maintenance season.
The dollar soared against major currencies on speculation about the first U.S. interest rate hike in years. A stronger greenback makes dollar-denominated commodities, including oil, less affordable in other currencies.
Other factors held little sway, including France's warning to Iran that it was ready to block a final deal on Tehran's nuclear program unless Iran provided full access to inspectors. Iran needs the nuclear deal to unlock sanctions on its crude exports.
Brent crude settled down $1.66, or 2.6 percent, at $62.06 a barrel.
U.S. crude settled at $57.71, down 52 cents, or 1 percent.
Brent's premium to U.S. crude <CL-LCO1=R> narrowed to a mid-April low of $4.50.
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