Oil prices fall as U.S. dollar grows stronger
Source: By Friedman/Kantchev, Wall Street Journal • Posted: Thursday, May 28, 2015
Oil prices sunk early yesterday as the U.S. dollar strengthened with market participants questioning the sustainability of the recent price rebound.
Light crude for July delivery recently fell 2.1 percent to $58.45 per barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 1.7 percent to $64.40 per barrel on ICE Futures Europe.
Meanwhile, The Wall Street Journal Dollar Index, which tracks the dollar against other major currencies, rose 0.7 percent yesterday.
“Oil prices are fighting exceptional strength in the dollar,” Phil Flynn, analyst at Price Futures Group, said in a note. “The key for oil’s direction today seems to be the dollar”.