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Oil prices fall amid rising dollar, concerns over U.S. growth

2019-01-12 10:44

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Oil prices dropped on Friday, snapping its consecutive rally for nine days, weighed down by the rising greenback and sliding energy stocks due to concerns caused by the ongoing U.S. government shutdown.

Crude futures sank along with the ebbing energy sector in the 11 primary S&P 500 sectors, which led the laggards with around 0.58 percent fall. The tepid performance of both crude futures and energy stocks came as the U.S. government shutdown has been stretching for three weeks and showed no signs of ending.

Analysts and investors have turned on a risk-off mode and become more cautious about holding the dollar-denominated assets.

In that regard, as dollar bounced on Friday, crude became more disadvantageous for being more expensive for traders and investors.

However, both WTI and Brent crude posted weekly gains for a second week, with the U.S. crude up nearly 8 percent and Brent climbing around 6 percent.

Offsetting the adverse political impact, oil rigs in the United States declined by four, the second weekly fall, as caution grew among oil producers in their drilling plans for 2019, according to U.S. energy services firm Baker Hughes on Friday.

The West Texas Intermediate for February delivery fell 1 U.S. dollar to settle at 51.59 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery plunged 1.2 dollars to close at 60.48 dollars a barrel on the London ICE Futures Exchange. Enditem
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