It has just been reported that Brent crude oil futures (LCOc1) fell by 0.69%. A barrel now cost 446.17 in Dubai.
Also, US West Texas Intermediate (WTI) crude oil futures CLc1 were down by 1.06% at $44.95 a barrel.
If the rate of the US dollar is high, oil prices (which is priced in dollars) becomes high. This is as a result of exchange rates.
“Oil traded in a sideways range overnight, as the stronger US dollar (overshadowed) optimism from Saudi’s Energy Minister over a production cut agreement” said Jeffrey Halley (senior market analyst at OANDA brokerage in Singapore).
Janet Yellen (US Federal Reserve Chair) also added that the dollar reigning supreme, Asaia trading of crude should have a slightly heavy tone and that the US dollar index reached a 13-1/2-year high. She also added that rate increase could happen relatively soon and that would indicate higher chances of the rate hike hopefully in December.
“Commodities were mixed, with the stronger dollar creating headwinds for the sector. Brent crude oil traded around $46 per barrel as investors saw an increasing chance that OPEC would reach an agreement on production cuts” Australian bank (ANZ).