Oil Falls On Stronger US Dollar, Possibility Of Higher OPEC+ Output
Oil prices slipped on Friday (23/05), weighed down by a stronger U.S. dollar and the possibility that OPEC+ will further increase its crude oil output.
Brent futures fell 37 cents to $64.07 a barrel by 0015 GMT. U.S. West Texas Intermediate crude futures lost 39 cents to $60.81.
Brent was down 2% on the week, and WTI was 2.7% lower.
The U.S. dollar strengthened against a basket of currencies on Thursday, boosted by the passage of President Donald Trump's bill for tax and spending cuts by the House of Representatives.
Oil typically trades inversely with the dollar because a stronger greenback makes the commodity more expensive for non-U.S. buyers.
A Bloomberg News report that OPEC+ was considering another large production increase at a meeting on June 1 also pushed oil prices lower.
Increasing output by 411,000 barrels a day (bpd) for July was among the options discussed, but no final agreement has yet been reached, the report said, citing delegates.
Reuters previously reported that OPEC+ would accelerate oil hikes.
A large crude oil build in the U.S. earlier in the week also weighed on oil prices.
U.S. crude oil storage demand has surged in recent weeks to levels similar to the COVID-19 pandemic, according to data from storage broker The Tank Tiger, as traders brace for a flood of increased supply in coming months from the Organization of the Petroleum Exporting Countries and its allies.
On Friday, the market will watch for U.S. oil and gas rig count data from Baker Hughes that is used as an indicator for future supply
Source: Reuters
