Due to the rising U.S shale supply, prices of oil abruptly dropped. The international benchmark, Brent crude futures, traded at $55.33 a barrel – 15 cents lower than their last close. The United States West Texas Intermediate crude futures went down by 8 cents and traded at $49.83 a barrel.
According to the United States government and the U.S. Energy Information Administration’s monthly drilling productivity report, U.S. shale production is set to advance for a tenth month in a row in October and may reach a peak of high of 6.1 million barrels per day.
In addition, investors and analysts are turning their attention towards the path of Hurricane Maria, a top category Atlantic storm that crossed the Caribbean islands on Tuesday. There is a possibility that this hurricane will damage oil refineries or even interrupt shipping to and from the United States.
The dollar continued to advance against the Japanese safe-haven yen on Tuesday nearly touching eight-week high. The greenback traded at 111.52 yen JPY=, which was still an inch close to Monday’s peak of 111.66 yen – the dollar’s highest since late July. Peter Chia, FX strategist for United Overseas Bank in Singapore, said that as the greenback might edge up towards 112 yen even though its current rise against the Japanese currency seemed to be a bit over-extended.The rise of the dollar is sustained by a recent surge in the United States bond yields. In addition, the United States 10-year Treasury yield already reached an approximate percentage of 2.237% on Monday.