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Oil prices decreased today, as the US dollar dropped to a two-year low against the euro on Wednesday after disappointing US jobs data, as well as owing to concerns about oil demand in the country, due to a build-up in crude stockpiles.

Brent crude dropped by 24 cents to hit $109.73 a barrel, while US crude was down by 51 cents to settle at $97.79, reported Reuters.

The data revealed that US employers hired far fewer workers than expected in September, suggesting the country’s economy may have lost some momentum, even before the damaging 16-day partial shutdown of the federal government.

The US dollar also reached a fresh eight-month low against the major currencies, with the dollar index slipping to 79.141 and nearing this year’s low of 78.918, set in early February.

The decrease in oil prices was also supported by the American Petroleum Institute’s data, which revealed crude stocks building at Cushing, Oklahoma, supported the selling of US oil.

Investors are now eyeing on the weekly report from US Information Administration (EIA), which is slated for release as per regular schedule post shutdown.

The US refinery maintenance and the pipeline outages, which damaged domestic stockpiles, stretched the Brent-WTI oil spread to its widest since April.


Image: Brent value dips tp less than $110 after the US dollar drops to two-year low. Photo courtesy of freedigitalphotos.net.

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