US And Brent Oil Down On Profit-Taking, Strong Dollar
NEW YORK, June 10 (Reuters) - Brent crude reversed course to end down on Tuesday, while U.S. oil also fell due to a stronger dollar and profit taking by traders following strong gains on Monday.
Brent futures closed at $109.99 on Monday, the highest in nearly two weeks, supported by positive economic data from China and the United States, the world's two largest energy consumers.
But momentum stalled on Tuesday as Brent rose above $110, only to later drop below the key mark, despite positive economic data.
"A strong dollar and a not-so-strong stock market are double trouble for energy prices," said Walter Zimmerman, chief technical analyst at United-ICAP.
Brent settled down 47 cents at $109.52 a barrel on Tuesday, after hitting a high of $110.32. U.S. oil slipped 6 cents to settle at $104.35 a barrel after ending up 1.7 percent on Monday, its biggest daily gain since April.
The spread <CL-LCO1=R> between the two benchmarks, which has been narrowing over the past two weeks, closed at $5.17, its lowest point since April 15.
Analysts polled by Reuters expected a weekly inventory report to show a 1.5 million-barrel drop in U.S. crude stocks, signaling healthy consumption as the summer driving season gets under way.
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