World Oil Prices Rally For Strengthening Dollar

PT Equityworld, Jakarta Oil prices trim gains as fears of a rise in US shale gas production cuts will overshadow efforts undertaken exporting countries.

US crude oil price, West Texas Intermediate rose 27 cents to settle at US $ 53.20 at the close of trading on Tuesday, as quoted by CNBC on Wednesday (02/15/2017).

While the price of world oil benchmark, Brent rose 36 cents, and sold at US $ 55.95 per barrel. Brent briefly touch the highest level of US $ 56.46 per barrel.

The rally in early trading yesterday lost power because of the strengthening dollar. The dollar rose after Federal Reserve Governor Janet Yellen stated that the central bank will raise interest rates at the next meeting.

A stronger dollar makes commodities sold in dollars such as crude oil more expensive for other currency.

“Oil prices are usually quite volatile barely budged for two months, the reason for the conflict dynamics in the market,” said Hans van Cleef, senior energy economist at ABN AMRO Bank in Amsterdam.

Organization of Petroleum Exporting Countries (OPEC) and other exporters including Russia have agreed to cut production by nearly 1.8 million barrels per day (bpd) during the first half of 2017 in an effort to rein in excess rhang global fuel supply.

read our news Gold Down In 4th Session Because Strengthening Dollar | PT Equityworld

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s