Oil falls on strong dollar, crude glut; storms limit losses
- Wall Street dips on Trump protectionism, Qualcomm drag
- Yahoo! (YHOO) Tops Q4 EPS by 4c; Sees Verizon Deal Closing in Q2, Not Q1
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- After-Hours Stock Movers 1/23: (REXX) (MRCY) (SYNC) Higher; (FSM) (OCUL) (CASC) Lower (more...)
View of gasoline pumps at a petrol station in Paris in Paris, France, May 26, 2016. REUTERS/Benoit Tessier
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
By Barani Krishnan
NEW YORK (Reuters) - Oil prices fell Tuesday, with Brent losing nearly 2 percent, as the dollar rallied and glut worries grew amid forecasts for higher U.S. crude stockpiles and Iran's remark that it was on target to reach peak production.
News that energy firms in the U.S. regulated areas of the Gulf of Mexico had shut some 22 percent of crude oil equivalent output as a precaution to threats from a tropical storm limited some of the downside in crude prices.
Brent crude futures
U.S. West Texas Intermediate (WTI) crude futures
It was a second straight day that oil slid on worries of oversupply and a strong dollar, adding to Monday's drop of more than 1 percent in Brent and WTI.
"Today is just another economic story that's fed the dollar's strength and with the weekly build expected in U.S. crude, prices are getting a double whammy," said Tariq Zahir, a trader in WTI timespreads at Tyche Capital Advisors in New York.
"Yes, we have storm concerns but they are not really affecting production as much as the market bulls would like."
After the market settled, the trade group American Petroleum Institute reported that U.S. crude stockpiles rose 942,000 barrels last week, in line with expectations of analysts polled by Reuters. The U.S. government will release official inventory data on Wednesday. [EIA/S]
An Iranian government official said at an oil industry conference in Norway that Tehran's production was expected to hit 4 million barrels per day by year end. Iran was producing that much before Western sanctions reduced its exports.
The dollar index <.DXY>, which measures the greenback against a basket of currencies, hit three-week highs after the U.S. Consumer Expectations Index rose to October highs. [USD/]
The dollar has rallied since Friday, after Federal Reserve Chair Janet Yellen raised expectations for a U.S. rate hike in a policy speech. A stronger greenback tends to make dollar-denominated commodities such as oil costlier for holders of other currencies.
Oil prices rose about 20 percent earlier in August, after the Organization of the Petroleum Exporting Countries said it was working with non-OPEC members to reach a production freeze. Iraq said on Tuesday it was committed to freezing output when OPEC meets informally for talks with other producers in Alegria next month.
(Additional reporting by Ahmad Ghaddar in LONDON and Roslan Khasawneh in SINGAPORE; editing by David Gregorio and Marguerita Choy)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oil slips as U.S. drilling recovery offsets OPEC-led cuts
- UPDATE: Weekly Crude Inventory Increases by 2.3M Barrels, Says EIA
- Fossils of utterly huge otter unearthed in China
Create E-mail Alert Related CategoriesCommodities, Reuters
Related EntitiesCrude Oil, OPEC
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!