On Tuesday, oil prices lost more steam because market participants simply pulled back after the recent surge, while financial analysts told crude prices would most likely fluctuate until there’s more clarity as for American interest rates.
In New York, July delivery sweet, light oil futures were worth $49.50 per barrel, down $0.07. Then, August Brent crude futures sank $0.09, trading at $50.46 a barrel.
Overnight, Brent crude priced stuck to the$50 crucial level, following reports of multiple attacks to Nigeria crude operations. However, crude prices managed to rebound right after Janet Yellen, Fed Chair told she’s still expecting gradual interest rate hikes in 2016, notwithstanding the softer-than-expected American job growth the previous month.
According to the WSJ dollar index, the evergreen buck last traded at $86.37, up 0.06%. As crude prices are normally denominated in US dollars, then a stronger greenback makes the number one energy commodity less affordable for market participants conducting their business in foreign currencies.