Saturday, 20 April 2019 | 12:12 WIB

Strengthening Dollar Suppresses Global Oil Prices

Illustration, oil refinery (Special)

JAKARTA, NETRALNEWS.COM - World oil prices fall again on Thursday (3/2/2017) triggered by data that shows compliance in realizing agreements on production cut reached by the large producers last year remains weak.

Media reports said Russian oil production during February was unchanged from January, with the remaining piece only a third of the levels promised under an agreement with the Organization of Petroleum Exporting Countries (OPEC).

A stronger dollar also suppressed oil which is priced in the greenback, as it becomes more expensive for buyers in other currencies.

The exchange rate of dollar rose against other major currencies, because of ‘hawkish’ comments from the officials from the US Federal Reserve to support the market speculation for a rate hike later this month.

The US dollar index, which measures the greenback against six major currencies, climbed 0.44 percent to 102.230 on Thursday (2/3)’s trade closing.

The US Benchmark light sweet crude or West Texas Intermediate (WTI) for delivery in April, slipped $1.22 to settle at $52.61 per barrel on the New York Mercantile Exchange.

The global benchmark, Brent North Sea crude, for May’s delivery slid $1.28 to close at $55.08 per barrel on London's ICE Futures Exchange. (*)