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Oil prices fall as U.S. dollar strengthens

NEW YORK
2022-11-01 04:07

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NEW YORK, Oct. 31 (Xinhua) -- Oil prices declined on Monday, weighed by strength in the U.S. dollar.

The West Texas Intermediate (WTI) for December delivery decreased 1.37 U.S. dollars, or nearly 1.6 percent, to settle at 86.53 dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery lost 94 cents, or 1 percent, to settle at 94.83 dollars a barrel on the London ICE Futures Exchange.

The U.S. currency appreciated noticeably as market participants expect another big rate hike from the Federal Reserve later this week.

The dollar index, which measures the greenback against six major peers, increased 0.7 percent to 111.5280 in late trading on Monday. Historically, the price of oil is inversely related to the price of the U.S. dollar.

Despite Monday's loss, oil prices scored a gain for the month, partly boosted by a major output cut decision announced by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.

For October, the WTI rallied 8.9 percent, while Brent climbed 7.8 percent, according to Dow Jones Market Data.
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