NEW YORK: US crude oil fell yesterday, on track for its fourth daily decline on continued concerns about ample supply at a time of weak global economic data and fragile demand.
Analysts and traders also cited some liquidation of long positions ahead of Monday’s expiration of the front-month light-crude contract.
Brent crude hovered around $98 a barrel, as talk of possible Opec production cuts kept the benchmark up from the 26-month lows reached at the start of the week.
Renewed strength in the US dollar against major currencies also pressured oil. The dollar index hit its highest in more than four years, underpinned by an improved US job market. The Euro also reached a 14-month low vs the US dollar.
“What we’re seeing is a situation where everybody is concerned about the demand side of the equation and oversupply. Let’s face it, the market is very heavy right now,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
The stronger dollar has put a drag on oil markets as it makes commodities denominated in the US currency more expensive for holders of other currencies.
US crude was down $1.11 at $91.96 a barrel at 11.11am EDT (1511 GMT) while Brent was down 6 cents at $97.64 a barrel. Both contracts saw their biggest drop in more than two weeks on Thursday.
REUTERS
