The prices of oil drifted lower on Friday, extending losses set in the previous session as stronger dollar lowered demand on commodities and following concerns about unplanned refinery shutdowns in the U.S. Midwest.
Analysts said oil prices were also pressured by reports that a number of oil refineries in the U.S. Midwest were experiencing outages ahead of planned maintenance in September at many refineries as the summer travel season ends. The outages are seen to have a greater impact on WTI prices.
- Crude oil edged 0.18% lower to trade at $ 97.99 a barrel
- Brent oil was at $ 105.97 a barrel, 0.06% lower
The green currency has soared against majors this month after a parade of upbeat economic data from the United States, where it held just below a 10-month peak against a basket of major on Thursday.
The U.S. dollar extended gains for a fourth straight sessions Friday, with the index last seen trading at 81.56 after opening at 81.51, while setting a session high at 81.59 and low at 81.51.
Investors will now turn their attention to Friday’s U.S. jobs report for July, which was expected to indicate that the recovery in the labor market is continuing.
- NYMEX Gasoline lost 0.19% to trade at $ 279.22
- NYMEX Heating Oil rose 0.21% to trade at $ 289.59
- NYMEX Natural Gas dropped 0.57% to $ 3.818
Reports of additional tougher sanctions on Russia by the U.S. and European Union for its support to separatists in Ukraine offset gains. Energy investments in Russia are now facing delays after sanctions.