Friday oil prices slumped by close to 1 percent in the early Asian trade in light of deep concerns over a global crude oversupply shown by a major increase in U.S. production: according to official data, crude production rose to 9.35 million barrels per day last week, an amount which is up by nearly 500,000 barrels per day compared to the same period a year ago.
Brent crude futures LCOc1 were down by 39 cents, or 0.77%, closing at $50.25 a barrel. In addition, United States West Texas Intermediate crude futures CLc1 slipped by 45 cents, or 0.93% to $47.91 per barrel.
The surge in U.S. output has put a strain on the OPEC members’ effort to cut production in a deal to drain a global crude over-supply so as to prevent prices from slipping down from $50 per barrel.
The dollar hit a 1-week high against the safe-haven yen on Friday. The dollar was up by 0.2 percent closing at 111.560 yen after rising to 111.580, the currency’s highest since May 26th. This was after the release of upbeat macro-economic data related to the U.S. private sector. Investors are waiting for the release of the non-farm payrolls while hoping for another potential boost.
The euro went lower closing at $1.1216 after losing 0.3% on Thursday. The common currency had risen to a nine-day high of $1.1257 on Thursday and is still expected to reap 0.4% weekly gains.