Oil prices slip as dollar gains ahead of Jackson Hole meet

Dhaka,  Tue,  26 September 2017
Published : 25 Aug 2017, 00:42:34

Oil prices slip as dollar gains ahead of Jackson Hole meet

OPEC, non-OPEC panel says all options open to ensure market rebalance
LONDON, Aug 24 (Reuters): Oil prices slipped on Thursday, giving up some recent gains as the dollar strengthened ahead of a meeting of central bankers in Jackson Hole, Wyoming, which could signal changes to monetary policy.

Benchmark Brent crude LCOc1 was down 20 cents a barrel at $52.37 by 1120 GMT. US light, sweet crude CLc1 was 20 cents lower at $48.21 a barrel.

The annual meeting at Jackson Hole starts on Thursday and will include speeches by US Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi on the outlook for monetary policy and interest rates.

Any support for the dollar .DXY from the meeting could hit oil and other assets priced in the US currency.

"Comments by Yellen and Draghi may provide volatility for the dollar, and thus dollar-denominated commodities," said Hans van Cleef, senior energy economist at ABN AMRO in Amsterdam.

"That's encouraging some profit taking after yesterday's rally in crude," he added.

Both crude contracts rose more than 1.0 per cent on Wednesday, buoyed by potential output disruptions from the Gulf of Mexico storm Tropical Depression Harvey.

"For the next few days, the US market is going to be focused on Texas as Tropical Depression Harvey is expected to strengthen into a Category I hurricane by Friday," said Sukrit Vijayakar, director of energy consultancy Trifecta.

"Operators in the area are already closing down platforms and evacuating workers as a precaution," he added.

Harvey strengthened into a tropical storm with winds of about 40 miles per hour (65 km per hour) and was located about 440 miles (705 km) southeast of Port Mansfield, Texas, the US National Hurricane Center reported.

Another report from Dubai adds: A joint OPEC, non-OPEC monitoring ministerial committee said on Thursday it was confident the oil market was moving in the right direction but that all options, including an extension to the supply-cut pact beyond March, were open to ensure market stability.

"Oil commercial stocks fell in July and the latest five-year average has been reduced from the beginning of this year. Supported by the narrowing Contango, floating storage has also been on a declining trend since June," the committee, known as JMMC, said in a statement.

"The JMMC will continue to monitor other factors in the oil market and their influence on the ongoing market rebalancing process. All options, including the possible extension ... beyond Q1 of 2018, are left open to ensure that all efforts are made to rebalance the market."
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