WTI Crude Oil Prices Dip as US Dollar Trades Strong
WTI crude oil is exhibiting signs of bearishness on Wednesday after rallying earlier this week, with prices slipping over a recent
WTI crude oil is exhibiting signs of bearishness on Wednesday after rallying earlier this week, with prices slipping over a recent strengthening in the US dollar which makes it more expensive for holders of other currencies to buy the commodity. At the time of writing, WTI crude oil is trading at around $59.98 per barrel.
WTI crude oil had started the week on a strong footing, with supply concerns sending prices higher. Geopolitical tensions in the Middle East and a deep freeze that forced oil production in Texas, US to shut down had raised concerns of tightening supply, causing prices to rally.
However, the US dollar making gains against its major peers on the back of a rise in US Treasury yields have sent oil prices lower in the current session. Losses in crude oil, however, remain limited as the deep freeze continues to wreak havoc in the southern region of the US, causing a decline in crude production by anywhere between 500k to 1.2 million bpd across the Permian Basin.
Meanwhile, UK Brent oil prices are also sliding lower after oil workers called off a possible strike in Norway – Europe’s largest producer of oil and gas. Investors had anticipated that the strike would go ahead, causing a tightening in supply, but the workers reached a bargain on wages with operator Equinor.
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