|Published : 17 Oct 2016, 11:07:14|
Oil prices fall on strong dollar
Oil prices fell early on Monday, pulled down by a rising rig count in the United States, a strong dollar and record OPEC-output which comes amid slowing global economic growth that could erode fuel demand.
US West Texas Intermediate (WTI) crude oil futures were trading at $50.16 per barrel at 0115, down 19 cents from their last settlement.
Traders said that WTI was pulled down by another rise in US oil drilling activity.
International benchmark Brent crude oil futures LCOc1 were also down, shedding 11 cents from their last settlement to $51.84 per barrel.
Traders said that a seven-month high of the dollar against a basket of other leading currencies was also weighing on crude prices.
Since oil is traded in dollar, a stronger greenback makes it more expensive for countries using other currencies at home to purchase fuel, potentially undermining demand.
Brent was also weighed by fresh production records from the Organisation of the Petroleum Exporting Countries (OPEC), which pumped out a record 33.6 million barrels of crude oil per day in September PRODN-TOTAL.
OPEC is scheduled to meet on Nov. 30 to discuss a production cut. The producer cartel hopes non-OPEC members, particularly Russia, will join a potential cut, according to a news agency report.