Oil prices down in Asian trade on strong US dollar, out­put lev­els

The China Post - - MARKETS -

Oil prices dipped in Asia Tues­day ow­ing a stronger U.S. dollar while in­vestors ex­pect the OPEC car­tel to main­tain out­put lev­els at a key meet­ing this week de­spite a global sup­ply glut, an­a­lysts said.

U.S. bench­mark West Texas In- ter­me­di­ate for July de­liv­ery eased seven cents to US$60.13 while Brent crude for July fell 15 cents to US$64.73 in af­ter­noon trade.

Sin­ga­pore’s United Over­seas Bank said prices “re­treated...on the im­pact of a strong dollar and wor­ries of stub­bornly high sup­plies as OPEC pre­pared to meet this week to tar­gets.”

The dollar was at 124.65 yen in Tokyo Tues­day, slightly lower than 124.81 yen late Mon­day in New York but well above 124.12 yen on Fri­day and at highs not seen since De­cem­ber 2002.

A stronger green­back makes

stick to pro­duc­tion dollar-priced oil more ex­pen­sive for buy­ers us­ing weaker cur­ren­cies, dent­ing de­mand and push­ing prices lower.

An­a­lysts ex­pect the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries (OPEC) to agree to con­tinue pump­ing the same amount of oil when they hold their meet­ing in Vi­enna Fri­day.

The car­tel pro­duces about 30 per­cent of the world’s crude.

OPEC re­fused in Novem­ber to cut its daily out­put tar­get of 30 mil­lion bar­rels — where it has stood for more than three and a half years — de­spite a global sup­ply glut.

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