Oil prices continue to dip with stronger dollar

SINGAPORE (AFP) – Oil extended losses in Asia Tuesday as a stronger US dollar and progress in controlling wildfires in Canada's crude-producing Alberta province dampened prices.

Hawkish remarks by US Federal Reserve officials hinting at a June interest rate hike pushed up the greenback against major currencies.

''A stronger US dollar continued to extend pressure on commodity prices,'' CMC Markets analyst Margaret Yang said in a note.

A stronger greenback puts downward pressure on oil, as it curtails demand by making the dollar-priced commodity more expensive.

At around 06:30 GMT, US benchmark West Texas Intermediate for July delivery was down 30 cents at $47.78.

Brent North Sea oil, the European benchmark, for July was down 35 cents at $48.00.

Prices have rebounded since plunging to near 13-year lows below $30 in February but are still well short of peaks of more than $100 a barrel reached in June, 2014.

There are market concerns that a supply glut may return following news of Canada lifting evacuation orders for several oil production sites in fire-ravaged Alberta province amid cooler weather and light rain.

Prices were also weakened by comments from Iranian officials who vowed to keep up oil production after the lifting of Western sanctions in January.