Brent Crude Prices Fall On Firm U.S. Dollar – Outlook cautious
Brent crude prices fell on Thursday, pulled down as a firmer dollar outweighed a report of a decrease in U.S. crude inventories.
U.S. West Texas Intermediate (WTI) crude futures were at $61.15 a barrel at 0640 GMT, down 53 cents, or 0.9 percent, from their last settlement. Brent crude futures fell 42 cents, or 0.6 percent, from their last close to $65 per barrel.
The dollar rose to a one-week high against a basket of major currencies (DXY) on Thursday, after minutes of the Federal Reserve’s January meeting showed policymakers were more confident of the need to keep raising interest rates.
The firm dollar outweighed a reported fall in U.S. crude inventories.
The American Petroleum Institute on Wednesday reported an unexpected drop in U.S. crude oil inventories by 907,000 barrels to 420.3 million barrels for the week to Feb. 16, 2018.
Despite Thursday’s falls, analysts said oil markets were generally well supported due to demand-growth coinciding with production restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia.
“OPEC production curbs have stabilized the market. Adherence to (the) agreement has been relatively good,” Daniel Hynes, senior commodity strategist at ANZ bank, said in a report published on Thursday.
On the technical charts, Brent crude is trading sideways. The market is well supported above the 9 day and the 50 day moving averages, but below the 20 day and 200 day moving averages. The RSI is at 44.13 and the MACD has made a positive crossover above the signal line.
Sell stop at 64.81, Take profit at 64.36, Stop loss at 65.01