Crude Oil Slips As Investors Await Reports on Major Producers’ Production
Jan, 16th 08:47
Crude futures edged lower on Monday, driven mainly by a stronger U.S. dollar while investors are nervously awaiting reports on major global producers’ output.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February dropped more than 0.3% to trade at $52.15 per barrel in the Globex electronic session. U.S. markets are closed on Monday for Martin Luther King Jr. Day; therefore, the release of U.S. oil output and inventory for the week ending Jan. 13 will be delayed one day to Thursday.
Before that, market participants will pay attention to the monthly production data released by OPEC on Wednesday.
Last week, the U.S. Department of Energy stated that the nation’s oil production would likely rise to an average of 9.3 million barrels a day by next year. Meanwhile, Goldman Sachs forecasts U.S. oil production will increase by 235,000 barrels a day year-over-year in 2017 given rising oil rigs in the country.
The dollar index, which compares the dollar to a basket of currencies, added 0.15% to trade near 101.60. As crude oil is traded in U.S. dollars, a firmer dollar means cheaper prices for foreign traders.
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