- Home
- >
- >
- Oil prices drop on strong dollar, US crude hits six-year low
Oil prices drop on strong dollar, US crude hits six-year low
Rating:
Loading...Oil prices fell sharply in early Asian trade on Monday, with U.S. crude dropping more than 2 percent to a six-year low after the dollar hit fresh highs and concerns grew that the United States might run out of oil storage.
The Fed's policy-setting committee meets this week with the expectation that it could tighten monetary policy as soon as June.
A stronger greenback makes commodities denominated in the dollar more expensive for holders of other currencies.
The number of working U.S. oil rigs is 46% lower than an all-time high of 1,609 hit in October.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
However, total U.S. crude oil inventories stood at 448.9 million barrels as of last week, the most in at least 80 years, indicating that cheap prices have yet to affect output.
Varchev Traders If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
