- Crude oil prices slide near four-week lows due to a stronger dollar and continued concerns about U.S.-China trade talks; WTI -2.1% to $51.59/bbl, Brent -1.3% at $61.31/bbl.
- "The U.S. dollar is strengthening again today in spurring much of today’s early WTI weakness," according to analysts at Ritterbusch and Associates. "WTI appeared much more willing to follow equities lower than higher last week with the strength in the U.S. dollar evolving as the decider in pushing WTI values back to below our expected $53 support."
- "Oil prices are still trying to figure out what lead to follow," says Vienna-based consultancy JBC Energy. "On the one hand, there is the OPEC+ cut story, now coupled with increasing issues around Venezuelan supply. [But] it has to be argued that a lot of the economic data that has been released over the last few days has really not been too encouraging, and U.S.-Chinese trade talks are also seemingly not progressing very fast."
- Also, the U.S. oil rig count jumped last week and there are "rumors that Venezuela is trying to skirt U.S. sanctions by means of trade with India," says RJO Futures senior market strategist John Caruso. "More downside in coming weeks is our forecast," but with WTI likely holding the $49-$48 area.
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- Now read: Is NYMEX Crude Oil In A - Range?
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