Prices of oil drops as United States crude inventories climbs
Thursday, despite of the efforts conducted by the Organization of Petroleum Exporting Countries to limit oil supply in order to fix the market’s imbalance, non-OPEC participant: United States fuel inventories was seen abruptly rising, making prices of oil fell an inch and interrupting its momentum gains from the start of the week.
In accordance to this, the drop in the oil prices was due to the rising U.S. crude production, according to the API or American Petroleum Institute, United States crude stocks edged up by 3.1 million barrels to approximately 468.5 million barrels last week
The United States West Texas Intermediate traded at $51.08 a barrel, which was down by 0.4% or 22 cents from their last close. The international benchmark: Brent crude futures traded at $56.62 a barrel, which was down by 0.6% or 32 cents from their last settlement.
United States dollar collapses to two-week low
Thursday, the United States dollar continues to weaken as the United States Federal Reserve’s current meeting indicated that some central bankers are still anxious about the continuously low inflation. According to the dollar index, the greenback fell to a low of 92.839 on the day, which is considered as the dollar’s lowest since September 26.
In addition, the dollar was also weak against its Japanese counterpart which traded at 112.38 yen JPY=, which was 0.1% lower but still above its Wednesday low of 112.08 yen JPY=. The euro also strengthens against the greenback, touching its highest in approximately more than two weeks and settled at $1.876 which was up by 0.1% on the day.