Oil prices drop to 1-month low as dollar rallies

Kelvin Ching Updated onMay 28, 2015

oil prices drop to 1 month low as dollar rallies 112283

Oil prices steadied on Thursday on news that U.S. crude stocks fell for a fourth week, suggesting the U.S. market was rebalancing after a long period of oversupply.

Data from the Energy Information Administration (EIA) on Thursday showed crude oil inventories USOILC=ECI fell by 2.8 million barrels in the last week, compared with analysts’ expectations for an decrease of 857,000 barrels. [EIA/S]

The figures helped support a market that has come under heavy pressure due to a 10-day rally in the dollar, which makes fuel more expensive for holders of other currencies.

The dollar has risen more than 4 percent against a basket of currencies .DXY over the last 10 days, helping accelerate a fall in oil prices from a five-month high early in May.

Front-month Brent LCOc1 was unchanged at $62.06 a barrel by 1515 GMT, after earlier reaching an intra-day low of $61.24, its weakest since mid-April.

U.S. crude futures CLc1 were down 50 cents from their last settlement at $57.01 per barrel.

Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.