Oil prices emerging, Dollar getting stronger

Business
May 24 2016 11:59 AM
Shraddha

Oil prices emerging, Dollar getting stronger

Oil extended losses in Asia today as a stronger dollar and progress in controlling wildfires in Canada's crude-producing Alberta province dampened prices.

CMC Markets analyst Margaret Yang said in a note, "A stronger US dollar continued to extend pressure on commodity prices”. US dollar makes dollar-priced commodities like oil more expensive, decresing demand.

At around 0930 IST, US benchmark West Texas Intermediate for July delivery was down 17 cents at USD 47.91.

Brent North Sea oil, the European benchmark, for July was down 20 cents at USD 48.15. Aw told AFP, "USD 50 appears to be the resistance level because there seems to be not enough of a will to boost it any higher," IG market strategist Bernard Aw said, All eyes are now on the OPEC meeting in Vienna on June 2 where it is hoped an agreement to cut production can be reached.

The market is also keeping an eye out for inventory data from the American Petroleum Institute, which is due later today, followed by US Energy Information Administration data tomorrow.

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