Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Majors Fall Amid Strengthening Dollar  

Stock MarketsJun 18, 2021 18:34
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – Shares of integrated oil companies as well as standalone refiners and marketers fell Friday as the dollar strengthened and so did crude prices even though other commodities fell.

The dollar Index, which tracks the greenback against a basket of six other currencies, is on course for the largest weekly gain since September.

A rising dollar makes oil more expensive in other currencies, curbing demand.

Chevron (NYSE:CVX), BP (NYSE:BP) and Marathon Petroleum (NYSE:MPC) fell 2% each and Exxon Mobil (NYSE:XOM) was 1.5% lower. Royal Dutch Shell (NYSE:RDSa) lost 4% in the session underway.

U.S. Federal Reserves’ hawkish tone on Wednesday on inflation has spooked investors even as the central bank ruled out a rate hike until at least 2023. Conflicting data points and breakdown of traditional thumb rules are also causing investor anxiety.

At 1255 ET, U.S. crude Crude Oil WTI Futures was up 0.9% at $71.67 a barrel, while Brent Brent Oil Futures was up 0.5% at $73.47. On Wednesday, Brent settled at its highest price since April 2019, while WTI settled at its highest since October 2018.  

Earlier Friday, OPEC officials received information that indicated U.S. oil output growth will likely remain limited in 2021 despite rising prices, Reuters reported.

Higher oil prices, while being an incentive for all explorers, are of particular significance to U.S. shale gas producers given their cost of production for every barrel is higher and elevated prices make it more attractive for them to extract.   

U.S. producers are instead choosing to focus on capital discipline and investor returns, rather than expanding supply, the OPEC's Economic Commission Board heard, according to a Reuters report.

 

Oil Majors Fall Amid Strengthening Dollar  
 

Related Articles

New Hugo Boss CEO seeks to double sales by 2025
New Hugo Boss CEO seeks to double sales by 2025 By Reuters - Aug 04, 2021

By Emma Thomasson BERLIN (Reuters) - New Hugo Boss chief executive Daniel Grieder set the ambitious target of doubling sales and ratcheting up profit margins on Wednesday, as the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email