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Oil prices plunge from record highs as dollar strengthens
Monday, 6 January 2025 16:11 WIB | OIL |Oil,

Oil prices fell on Monday amid a stronger U.S. dollar ahead of key economic data by the U.S. Federal Reserve and U.S. payrolls data later in the week.

Brent crude futures were down 28 cents, or 0.4%, at $76.23 a barrel by 0800 GMT after closing at their highest since Oct. 14 on Friday.

U.S. West Texas Intermediate crude futures were down 27 cents, or 0.4%, at $73.69 a barrel after closing at their highest since Oct. 11 on Friday.

Crude prices posted gains in the previous five sessions on hopes of improved demand following cold weather in the Northern Hemisphere and more fiscal stimulus by China to revitalize its battered economy.

The dollar's ​​strength, however, is a concern for investors, Priyanka Sachdeva, senior market analyst at Phillip Nova, wrote in a report on Monday.

The dollar held near a two-year high on Monday. A stronger dollar makes dollar-priced commodities more expensive.

Investors are also looking to economic news for further clues on the outlook for Federal Reserve interest rates and energy consumption.

The minutes of the Fed's last meeting are due on Wednesday and the December payrolls report is due on Friday.

There are some concerns ahead about Iranian and Russian oil shipments as the potential for stronger sanctions on both producers looms.

The Biden administration is planning to impose more sanctions on Russia over its war in Ukraine, targeting its oil revenues with action against tankers carrying Russian crude, two sources familiar with the matter said on Sunday.

Source: Investing.com

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