Crude Oil Loses Ground on Rising U.S. Production and Firm Dollar
Mar, 06th 09:01
U.S. crude oil prices traded lower on Monday, dragged down by an expansion in U.S. oil stockpiles and production and a strengthening dollar that has been spurred by rising possibility that U.S. Federal Reserve may raise rate as soon as later this month.
Data published by oil-field services company Baker Hughes Inc. late Friday showed the number of rigs drilling for oil in the U.S. rose by seven to 609 rigs last week. Meanwhile, the U.S. Energy Information Administration expects domestic oil output will reach 9 million barrels a day in 2017. If confirmed, the data will mark a rise of 100.000 barrels a day compared to the previous year.
On the other hand, markets are also bracing for an interest rate increase by the U.S. central bank on March 14-15th. A rate hike will strengthen the dollar and make dollar-nominated commodities including oil more expensive for foreign buyers, a scenario that often causes prices to fall.
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