Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Oil futures edge lower on stronger dollar, profit-taking

Published 29/10/2015, 09:02
© Reuters.  Crude oil prices decline as investors cash in on recent gains
DX
-
LCO
-
CL
-

Investing.com - Oil futures pushed lower on Thursday, as a broadly stronger U.S. dollar prompted market players to lock in gains from the previous session's 6% rally.

Crude oil for delivery in December on the New York Mercantile Exchange slumped 61 cents, or 1.34%, to trade at $45.33 a barrel during European morning hours.

The U.S. dollar surged to a two-month high against a basket of major currencies early Thursday after the Federal Reserve hinted at a possible rate hike in December.

Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.

A day earlier, Nymex crude prices soared $2.74, or 6.34%, following the release of bullish U.S. weekly supply data.

The U.S. Energy Information Administration said crude oil inventories increased by 3.37 million barrels last week. Market analysts' expected a crude-stock rise of 3.41 million barrels.

The report also showed that gasoline inventories decreased by 1.1 million barrels, compared to expectations for a decline of 0.9 million barrels, while distillate stockpiles fell by 3.0 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery dipped 56 cents, or 1.15%, to trade at $48.48 a barrel. On Wednesday, Brent prices jumped $2.24, or 4.79%.

The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.15 a barrel, compared to $3.11 by close of trade on Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.