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Crude prices dipped further in Asia on Friday on a stronger dollar, dampening a rally that saw the commodity hit 11-month highs earlier in the week.
The losses were in line with a sell-off on equities markets from Asia to the Americas fuelled by worries about the state of the global economy.
The greenback was boosted by better than expected US unemployment numbers, making oil more expensive and dampening demand.
Traders, however, expect a fresh boost for oil futures if there are new signs of tightening supplies.
“If the positive developments we are seeing like the tightening supply (and) increasing demand in the oil sector continue to develop for the next couple of months, then maybe the strengthening US dollar might not have that great an impact,” said IG Markets’ analyst Bernard Aw.
At around 0825 GMT, US benchmark West Texas Intermediate was 57 cents, or 1.13 percent, down at $49.99 while Brent North Sea crude was 56 cents, or 1.08 percent, lower at $51.39.
AFP
The losses were in line with a sell-off on equities markets from Asia to the Americas fuelled by worries about the state of the global economy.
The greenback was boosted by better than expected US unemployment numbers, making oil more expensive and dampening demand.
Traders, however, expect a fresh boost for oil futures if there are new signs of tightening supplies.
“If the positive developments we are seeing like the tightening supply (and) increasing demand in the oil sector continue to develop for the next couple of months, then maybe the strengthening US dollar might not have that great an impact,” said IG Markets’ analyst Bernard Aw.
At around 0825 GMT, US benchmark West Texas Intermediate was 57 cents, or 1.13 percent, down at $49.99 while Brent North Sea crude was 56 cents, or 1.08 percent, lower at $51.39.
AFP
