Dollar strength push oil prices to drop

May 20, 2016 10:53
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Oil prices fell on Thursday, May 19 / May because of rising US oil inventories and the strength of the dollar and the growth of Iranian oil exports to Europe and Asia.

By 12:47 am Moscow time fell global Brent crude blend "Brent" futures rose $ 1.19, or 2.43%, to $ 47.74 a barrel, compared with the last settlement.

US crude futures fell by $ 1.01, or 2.10%, to $ 47.18 a barrel.

He said Jonathan chief investment officer at the company, "Ayers Alliance" Securities bars in Sydney "The fall in the middle of the meeting was a reaction to the strength of the US dollar."

The dollar index reached the highest level in seven weeks, to 95.33 points earlier in the session on Thursday, before falling again. And the strength of the dollar makes the acquisition of primary commodities is dominated by the dollar on the trading session, including oil, more expensive for holders of other currencies.

In addition it influenced US data on crude stocks, impacted negatively on the oil markets. The published US Energy Information Administration data showing an unexpected increase of 1.31 million barrels in US crude stocks, to reach 541.29 million barrels.

Increasing Iran's oil exports after the lifting of the sanctions that were imposed on Tehran in the fall in oil prices also contributed.

It is expected that Iran's oil exports jump by nearly 60% in May / May. The increase suggests that transport problems (logistic problems), they faced Iran after years of sanctions expired or become less severe.

Source: "Reuters"