Oil dips on rising US dollar

Highlights

  • Crude oil prices dipped on Monday.
  • Oil prices got support from disrupted US supply followed by two hurricanes.
  • Crude oil has grown significantly in the last one year.

Crude oil prices tumbled nearly 2% on Monday due to the rise in the US dollar, making oil more expensive for other currency holders.

November delivery Brent Crude oil futures last traded at US$74.40 per barrel up 0.46%, whereas November delivery WTI crude oil futures traded 0.74% up at US$70.66 per barrel as of 21 September 2021 at 10:25 AM AEST.

The dollar got a boost as worries about the solvency of Evergrande, a Chinese property developer spooked equity markets.  The halt in the US Gulf Coast production for few months due to the damage caused by hurricanes, further made oil expensive. Crude oil prices have gained as much as 73.85% in the last one year. 

Bottom Line

Crude oil prices dipped on Monday due to the rise in the strength of the US dollar however the prices got some support from the signs that the US output will remain halted for few more months.

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