By Florence Tan
SINGAPORE (Reuters) – Oil prices fell in early Asian trade on Monday for a second session in a row, pressured by a stronger dollar, after concerns about higher interest rates for longer resurfaced and cooled risk appetite of investors.
Brent crude futures fell 40 cents, or 0.5%, to $84.84 a barrel by 0036 GMT, after falling 0.6% on Friday. West Texas Intermediate crude oil futures were trading at $80.34 a barrel, down 39 cents, or 0.5%.
“The US dollar opened bid this morning and appears to have broken higher following improved US PMI data on Friday evening and political concerns ahead of the French election,” said Tony Sycamore, markets analyst at IG in Sydney.
A stronger dollar makes dollar-denominated commodities less attractive to holders of other currencies.
However, both benchmark oil contracts rose around 3% last week on signs of stronger demand for petroleum products in the US, the world’s biggest consumer, and as OPEC+ cuts kept supply under pressure. control.
US crude oil inventories fell, while gasoline demand rose for the seventh consecutive week and jet fuel consumption returned to 2019 levels, ANZ analysts said in a note.
Geopolitical risks in the Middle East arising from the Gaza crisis and increased Ukrainian drone attacks on Russian refineries are also supporting oil prices.
In Ecuador, state oil company Petroecuador declared force majeure on deliveries of Napo heavy crude for export after the closure of a key pipeline and oil wells due to heavy rains, sources said on Friday.
In the US, the number of oil rigs in operation fell by three to 485 last week, the lowest level since January 2022, Baker Hughes said in its Friday report.
(Reporting by Florence Tan; Editing by Sonali Paul)
