Oil extends losses on higher dollar, US stock build

Oil extends losses on higher dollar, US stock build

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TOKYO - Oil futures slid on Wednesday, extending losses from the previous day, as a stronger U.S. dollar prompted fresh selling while data showing a build in U.S. crude stocks and Shanghai's extended lockdown fuelled fears of slower demand.

Brent crude futures fell 97 cents, or 0.9%, to $105.67 a barrel, while U.S. West Texas Intermediate futures were down 98 cents, or 1.0%, to $100.98 a barrel at 0029 GMT. Brent fell 0.8% on Tuesday and WTI lost 1.3%.

"Higher dollar, an increase in U.S. crude stockpile and concerns over weaker demand in China due to Shanghai's continued lockdown added to pressure," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

"Oil prices will likely stay at around $100 a barrel for a while amid demand concerns and an expectation for no conflict in the Middle East during the Muslim fasting month of Ramadan, but they may rise again after Ramadan and as the U.S. driving season kicks off," he said.

The U.S. dollar hit its highest in nearly two years on Tuesday, boosted by hawkish comments from Federal Reserve officials who pushed for a quick reduction in the central bank's bloated balance sheet. A stronger dollar makes oil more expensive for holders