2023-04-17 23:53:09
By Stephanie Kelly
NEW YORK (Reuters) – Oil prices fell on Monday as the dollar strengthened and investors pondered a possible May interest rate hike by the Federal Reserve, which could dampen prospects for an economic recovery.
Brent crude fell $1.55, or 1.8%, to settle at $84.76 a barrel, while U.S. crude fell $1.69, or 2.1%, to settle at $80.83 a barrel.
Both contracts posted their fourth consecutive weekly gain last week, the longest streak since mid-2022.
The dollar has been strengthening along with interest rate hikes, making dollar-denominated oil more expensive for holders of other currencies. The dollar index on a basket of currencies gained about 0.6% on Monday.
“The dollar is a little stronger, and that seems to be putting some pressure on oil,” said Phil Flynn, an analyst at Price Futures Group.
Traders are betting that the Fed will raise its interest rate in May by another quarter of a percentage point and have postponed expectations of a rate cut until later this year. [MKTS/GLOB]
(Reporting by Stephanie Kelly; Additional reporting by Noah Browning, Florence Tan and Emily Chow)
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Source:
Reuters
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