Oil prices dropped Monday as the stronger U.S. dollar made the dollar-priced crude more expensive and less attractive for buyers holding other currencies.
The U.S. dollar increased against the euro Monday as expectations for more stimulus in Eurozone accumulated before an European Central Bank (ECB) meeting scheduled later this week. Market was dragged down by the ample supplies.
The International Energy Agency (IEA) expected crude market to remain oversupplied for the year of 2016. The IEA predicted in a report last week that the global demand growth to slow in 2016 as price support is likely to wane.
Traders were looking forward to a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC delegates in Vienna, the capital of Austria, Wednesday.
Russia said last week it was prepared to discuss the global output. The West Texas Intermediate for November delivery moved down 1. 37 U.S. dollars to settle at 45.89 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased 1.85 dollars to close at 48.61 dollars a barrel on the London ICE Futures Exchange.
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