US Dollar Up, Oil Slips as US Supplies Undermine OPEC Cuts

تم نشره في Thu 16 November / Nov 2017. 01:00 AM - آخر تعديل في Thu 16 November / Nov 2017. 08:22 PM
  • Sheets of former U.S. President Abraham Lincoln on the five-dollar bill currency are inspected through a magnifying glass at the Bureau of Engraving and Printing in Washington March 26, 2015. - (Reuters)

CAPITALS —AlGhad— The US dollar steadied out against a basket of major currencies on Thursday after rebounding from a more than three-week low, as oil prices edge lower due to rising US production and inventories, threatening to undermine the outcomes of the OPEC cuts.

Even though risk appetite has improved in the last session, the US Dollar still faces possible fluctuation, as concerns build over the passage of new US tax revamps.

The dollar index, which measures the greenback against six rival currencies, was little changed at 93.824 today, Thursday, after slipping to 93.813 on Wednesday.

Since then, its lowest since October 20th, the US dollar recovered some ground as global markets showed a recovery in risk appetite.

In the meantime, Brent crude futures LCOc1 slipped some 14 cents on the barrel to USD61.75, while US light crude CLc1 fell 6 cents to USD55.27 a barrel.

If Brent ends lower, it would mark a fifth consecutive day of declines.

The US Energy Information Administration on Wednesday showed domestic crude inventories rising for a second week in a row, building by 1.9 million barrels in the week to November 10, reaching to 459 million barrels.

Stockpiles of gasoline also surprisingly rose, according to Reuters.

Meanwhile, weekly data shows ongoing boosts in US production as well.

Oil pumpjacks are seen near Aneth, Utah, U.S., October 29, 2017. - (Reuters)

US crude oil production has hit a record of 9.65 million barrels per day, meaning output has risen by almost 15 per cent since its mid-2016 low.

On the long run, the US is expected to account for more than 80 per cent of the growth in world crude supply in the next decade, the International Energy Agency said on Thursday.