Dollar, Lira and Kingpin Weigh on Tuesday's Trading
A stronger U.S. Dollar and a weakening Turkish lira factored into the oil market’s performance on Tuesday.
“Oil prices ended the trading day relatively flat due to downward pressure from a strengthening dollar, which has risen sharply in the wake of Turkey’s currency crisis,” said Delia Morris, Houston-based commodity pricing analyst.
The WTI settled at $67.04 a barrel, reflecting a 16-cent decline for the day, after trading between $66.73 and $68.37. Meanwhile, the Brent lost 15 cents to settle at $72.46.
Morris also pointed out that traders on Tuesday continued to digest last month’s oil output figures from OPEC’s kingpin.
“The market was also still assimilating data released from OPEC’s Monthly Report, which showed that Saudi Arabia had curbed production in the month of July by 53,000 barrels per day (bpd),” Morris explained. “Although the Kingdom had self-reported a decrease of 200,000 bpd for July, the OPEC report helped corroborate the story that the cartel’s largest producer was less certain about the strength of demand for its crude.”
Both Henry Hub natural gas and reformulated gasoline posted gains Tuesday. Natural gas rose three cents to settle at $2.96 while the price of a gallon of gasoline increased by two pennies to end the day’s trading at $2.03 a gallon.
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