Oil prices dip on stronger dol­lar

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Crude prices dipped fur­ther in Asia on Fri­day on a stronger dol­lar, damp­en­ing a rally that saw the com­mod­ity hit­ting 11month highs ear­lier in the week. The losses were in line with a sell-off on equities mar­kets from Asia to the Amer­i­cas fu­elled by wor­ries about the state of the global economy.

The green­back was boosted by bet­ter than ex­pected US un­em­ploy­ment num­bers, mak­ing oil more ex­pen­sive and damp­en­ing de­mand. Traders, how­ever, ex­pect a fresh boost for oil fu­tures if there are new signs of tight­en­ing sup­plies.

“If the pos­i­tive de­vel­op­ments we are see­ing like the tight­en­ing sup­ply (and) in­creas­ing de­mand in the oil sec­tor con­tinue to de­velop for the next cou­ple of months, then maybe the strength­en­ing US dol­lar might not have that great an im­pact,” said IG Mar­kets’ an­a­lyst Bernard Aw. At around 0400 GMT, US bench­mark West Texas In­ter­me­di­ate was 15 cents, or 0.30 per­cent, down at $50.41 while Brent North Sea crude was 13 cents, or 0.25 per­cent, lower at $51.82.

Prices have al­most dou­bled since hit­ting near 13-year lows at the start of the year as US sup­plies slowly shrink, while pro­duc­tion in Nige­ria is hit by rebel un­rest and Canada’s key oil re­gion is rav­aged by wild­fires.—AFP

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