Oil prices down on stronger US dollar

INQUIRER FILE PHOTO

SINGAPORE – Oil prices eased in Asia Monday as the US dollar strengthened while dealers sat on the sidelines due to a dearth of trading cues, analysts said.

US benchmark West Texas Intermediate for November delivery dropped 59 cents to $92.95 while Brent crude for November fell 25 cents to $96.75 in mid-morning trade.

“The stronger US dollar is not helping oil prices at the moment,” David Lennox, resource analyst at Fat Prophets in Sydney, told AFP.

“It’s pretty quiet at the moment and the oil market just seems happy to drift along,” he added.

The greenback bought 109.45 yen in Asian trade Monday, up from 109.29 yen in New York on Friday, helped by an upward revision to the second-quarter US economic growth estimate.

The US Commerce Department said Friday the economy grew 4.6 percent in April-June, faster than previously estimated.

A stronger greenback makes dollar-priced oil more expensive for buyers using weaker currencies, denting demand and pushing prices lower.

Analysts said investors will scrutinize key US data to be released this week for clues about demand in the world’s top crude consumer.

Data on personal income and spending in August will be released later Monday, while other key releases in the week include construction spending, vehicle sales and non-farm payrolls for September.