Crude oil prices have fallen following an anticipated increase of US shale output and stronger dollar.
Front-month Brent crude prices dipped 21 cents at $65.31 per barrel, and US crude declined 13 cents at $59.59 a barrel, Reuters reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The dollar prices reached one month high, making oil more expensive for buyers in other currencies.
Dollar gained strength after US Federal Reserve chair Janet Yellen hinted as a raise interest rates, which will be first since 2006.
Morgan Stanley said that falls in oil prices due to a stronger dollar may be a new trend.
Later this year, a stronger underlying inflation in the US strengthened the Federal Reserve’s case for a rise in interest rates due to the dollar value increasing compared with other major currencies.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGoldman Sachs told the news agency: "We believe that should West Texas Intermediate prices remain near $60 a barrel, US producers will ramp-up activity, given improved returns, with costs down by at least 20%."
As West Texas Intermediate (WTI) prices are at their high, the recent oil rally according to Timera Energy has lost its momentum.
