Oil prices fall on strong dollar

AFP, SINGAPORE: Oil prices fell further in Asia yesterday, with US crude falling below $50 a barrel as demand for the dollar-priced commodity takes a hit from a strong US currency, analysts said.
Expectations of more Iranian crude flooding the oversupplied global market within months following a deal on the country's nuclear ambitions continue to drag prices lower, they said.
US benchmark West Texas Intermediate (WTI) for August delivery fell 16 cents to $49.99 and Brent crude for September dropped 11 cents to $56.54 a barrel in late-morning trade.
"Most of the movement that we're seeing now in oil prices mainly comes from the dollar strength," said Daniel Ang, an investment analyst with Phillip Futures in Singapore.
The dollar got a boost after Federal Reserve chair Janet Yellen last week stuck to her forecast for an increase in the US central bank's key interest rate later this year, as the economy picks up pace.
A rise in interest rates will attract investors to the dollar because of the prospects of higher returns, driving up the currency's value. Since oil is priced in dollars, a stronger US currency makes the commodity more expensive, denting demand and putting downward pressure on prices.

Oil prices fall on strong dollar

AFP, SINGAPORE: Oil prices fell further in Asia yesterday, with US crude falling below $50 a barrel as demand for the dollar-priced commodity takes a hit from a strong US currency, analysts said. Expectations of more Iranian crude flooding the oversupplied global market within months following a deal on the countrys nuclear ambitions continue to drag prices lower, they said. US benchmark West Texas Intermediate (WTI) for August delivery fell 16 cents to $49.99 and Brent crude for September dropped 11 cents to $56.54 a barrel in late-morning trade. Most of the movement that were seeing now in oil prices mainly comes from the dollar strength, said Daniel Ang, an investment analyst with Phillip Futures in Singapore. The dollar got a boost after Federal Reserve chair Janet Yellen last week stuck to her forecast for an increase in the US central banks key interest rate later this year, as the economy picks up pace. A rise in interest rates will attract investors to the dollar because of the prospects of higher returns, driving up the currencys value. Since oil is priced in dollars, a stronger US currency makes the commodity more expensive, denting demand and putting downward pressure on prices.