Oil dips as US dollar firms, oil production is expected to rise
U.S. West Texas Intermediate (WTI) crude futures were at $61.32 a barrel at 0307 GMT, down 47 cents, or 0.8 percent, from their last settlement.
Oil prices fell on Wednesday, weighed down by the rebound of the U.S. dollar further away from three-year lows hit last week.
An expected rise in U.S. oil production also weighed on prices, traders said.
Brent crude futures fell 39 cents, or 0.6 percent, from their last close to $64.86 per barrel.
The dollar index, which measures the greenback against a basket of six major currencies, rose for a second day on Wednesday, moving further away from the three-year lows reached last week as traders shaved off some bearish bets against the U.S. currency.
“The U.S. dollar continues to find a firmer footing,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.
Also pressuring prices is surging U.S. production, now the world’s second-largest oil stream at more than 10 million barrels per day, only slightly behind Russia and ahead of top exporter Saudi Arabia.
For FREE Trading Trials – 90390 06355
Visit us: Nifty Future Trading Tips