Crude Oil Prices Down Distressed Strengthening Dollar

Equity World - Crude oil prices fell in late trading Tuesday morning (02/07) stressed the strengthening US dollar and US inventories OPEC production exceeds overcome obstacles sentiment oil exports due to rising tensions between the US and Iran.

US crude futures fell 82 cents, or 1.5 percent, to end at $ 53.01.

Brent crude oil futures prices traded down $ 1, or 1.8 percent, at $ 55.81 a barrel at 02:35 (1935 GMT).

Brent premium to WTI narrowed to around $ 2.15, the lowest since Feb. 1. If the remains at the level at the close, it would be the smallest premium since January 16

The dollar edged up versus a basket of currencies amid concerns over political uncertainty in Europe ahead of elections.

Oil prices, while supported by supply cuts agreed by the Organization of Petroleum Exporting Countries and a new surge in tensions between Iran and the United States, who fought for a new direction.

Trump's new sanctions against the Iranian government, although it did not affect oil production, raising concerns about the potential for further developments that may hamper export growth in OPEC's third largest producer.

Tensions between Tehran and Washington have increased since Iran's missile tests prompted the United States to impose sanctions on individuals and entities associated with the Revolutionary Guards.

Iran has increased its crude oil production due to the majority of international sanctions over its nuclear program were raised in 2016. Tehran exempt from OPEC supply cuts.

OPEC members are included in the agreement with Russia and other independent producers have carried out at least 80 percent so far, according to a Reuters survey and analysts. Russia has cut about 100,000 barrels per day and plans to increase to 300,000 barrels per day.

Implementation of the cuts begin on January 1 with the aim of reducing output by nearly 1.8 million barrels per day.

With this backdrop, investors bet on rising prices even though indicators such as the number of oil refineries were released Baker Hughes pointed to an increase in US supplies.

US energy companies to add oil refinery during the week 13th in 14, data showed on Friday. Despite the OPEC cuts, US crude oil inventories rose more than expected last week.

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