Strengthening US Dollar Overturns Oil Prices

Jakarta, Armfalcon.com —

Oil prices crude futures fell more than 2 percent in late trading Tuesday (25/4) afternoon US time or Wednesday (26/4) morning WIB.

Quoting Antara, Wednesday (26/4), West Texas Intermediate (WTI) crude futures for June delivery fell US$1.69 or 2.15 percent to US$77.07 per barrel on the New York Mercantile Exchange.

Brent for June delivery slumped US$1.96, or 2.37 percent, to close at US$80.77 a barrel on London’s ICE Futures Exchange.

EdwardMoya, senior market analyst at OANDA, said oil prices had slumped due to the pressure from the stronger US dollar.

He added that a stronger dollar is weighing on demand for oil because it makes the commodity more expensive for buyers holding other currencies.

[Gambas:Video CNN]

Additionally, crude oil demand signals remain largely bearish as oil services supplier Halliburton signaled that customers are clearly motivated to produce more oil and gas.

He added that oil was actually getting positive sentiment stemming from expectations of higher Chinese oil demand and a decline in stocks in the US. But that sentiment failed to stem the price decline.

(dzu/agt)

[Gambas:Video CNN]