LONDON: Brent crude oil slipped towards $107 a barrel yesterday because of a rising dollar, after reaching a three-month high earlier in the day due to unrest in Egypt that stoked concerns about global oil supplies.
The U S dollar rose to a three-year high and was poised for more gains on expectations the Federal Reserve might wind down its massive stimulus programme as early as September.
A strong dollar makes commodities such as oil that are priced in the US unit more expensive for holders of other currencies, typically pushing down prices.
Brent, the European benchmark, was down 67 cents at $107.05 a barrel by 1149 GMT, after hitting $108.04, the highest since April 4. U S crude slipped 46 cents to $102.76 a barrel, after earlier touching a fresh 14-month high of $104.12.
“Oil is at record high levels in dollar terms for emerging market economies such as India, Turkey and Brazil,” Olivier Jakob, of Petromatrix in Zug, said.
“For global demand, that will be an issue, because that’s where the growth is coming from.” Any conflict in the Middle East raises worries of disruption to major oil-producing areas or oil shipments.
Reuters
