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Oil prices fall on strong dollar, Brent near one-month low

Published 05/02/2018, 00:55
Updated 05/02/2018, 01:00
© Reuters. FILE PHOTO: An oil pump is seen operating in the Permian Basin near Midland
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TOKYO (Reuters) - Oil prices on Monday extended declines from the end of last week on the back of a stronger dollar, with Brent crude falling to its lowest in nearly a month.

Other markets dropped as investors were spooked by Friday's U.S. payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations .

That drove the greenback higher, which puts pressure on oil as the commodity is priced in dollars.

Brent (LCOc1) was down 75 cents, or 1.1 percent, at $67.83 a barrel at 0033 GMT, after falling 1.5 percent on Friday.

U.S. West Texas Intermediate (WTI) crude (CLc1) declined 66 cents to $64.79, after dropping 0.5 percent in the previous session.

An index of the dollar against a basket of currencies (DXY) rose to as high as around 89.38, approaching peaks reached on Friday, after the report showed U.S. jobs growth surged in January and wages rose, clocking up their biggest annual gain in more than 8-1/2 years.

Rising U.S. oil production is also pushing down prices, undermining attempts by the Organization of the Petroleum Exporting Countries (OPEC) to support prices.

© Reuters. FILE PHOTO: An oil pump is seen operating in the Permian Basin near Midland

Data from the U.S. government last week showed that output climbed above 10 million barrels per day in November for the first time since 1970, as shale drillers expanded operations after gains in oil prices last year.

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