Oil down on stronger greenback, rising U.S. rig count By Reuters

© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above on the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford/File Photograph

By Roslan Khasawneh

SINGAPORE (Reuters) -Oil costs dropped on Monday, extending final week’s losses after the U.S. greenback jumped to a three-week excessive and the U.S. rig depend rose, though practically 1 / 4 of U.S. Gulf of Mexico output stayed offline within the wake of two hurricanes.

futures fell 61 cents, or 0.8%, to $74.73 a barrel at 0650 GMT after dropping 33 cents on Friday.

U.S. West Texas Intermediate (WTI) crude futures fell 66 cents, or 0.9%, to $71.31 a barrel, after declining 64 cents on Friday.

“Power within the USD during the last couple of days has offered some headwinds to the market,” researchers at ING Financial institution stated in a observe on Monday.

Oil fell with the dollar close to a three-week excessive following a rally on Friday on better-than-expected U.S. retail gross sales information. That bolstered expectations for the U.S. Federal Reserve to start lowering asset purchases later this 12 months.

“WTI crude might consolidate over the subsequent few buying and selling periods till the trajectory of the greenback is slightly clearer,” OANDA analyst Edward Moya stated in a observe.

ING stated a tapering announcement this week would “doubtless put some downward stress on oil and the broader commodities advanced,” though it added such a step was extra doubtless in November.

A stronger dollar makes U.S. dollar-priced oil dearer for holders of different currencies, curbing demand.

An increase within the U.S. rig depend additionally saved a lid on oil costs. The oil and fuel rig depend rose by 9 to 512 within the week to Sept. 17, its highest since April 2020 and double the extent from this time final 12 months, Baker Hughes stated on Friday.

By Friday, 23% of U.S. Gulf of Mexico crude output, or 422,078 barrels per day, remained shut, the Bureau of Security and Environmental Enforcement stated.

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