Strengthening of the US Dollar Lowered Oil Prices

Strengthening of the dollar lowered oil prices. The mixed stock data also played a major role in the decline.

Futures contracts lost more than 3 percent in the New York market in the previous two sessions and started the week volatile. Looking at the data of the American Petroleum Institute (API), which is supported by the private sector, it was seen that there was a decrease in gasoline stocks and an increase in crude oil stocks last week. American shale oil production is expected to reach its peak next year after 2019. Refineries in the USA are said to be operational again after the cold weather last month. Oil prices have surged sharply this year, thanks to Saudi Arabia and OPEC+’s reduction in oil production and vaccine developments. Samsung Commodities Analyst Kim Kwangrae said: "Demand is expected to improve and supply to contract, but some are feeling the burden of this huge rally on their shoulders. The markets are currently in a mixed state." West Texas-type crude oil for April futures fell 0.8 percent in the Nymex market at 1:28 pm Singapore time to $ 63.48 a barrel. Brent for May futures fell 1 percent to $ 66.87 a barrel on the London ICE Futures Europe market, after a 1.1 percent decline in the previous session.