Oil prices retreat but outlook remains positive

SourceZawya
SectorOil & Gas
CountryGulf

LONDON – Oil prices extended losses on Tuesday on profit taking and a stronger U.S. dollar, but overall optimism about recovering demand kept a floor under prices. Brent crude was down 37 cents, or 0.5%, at $71.12 a barrel by 1335 GMT, after declining 0.6% on Monday.

U.S. West Texas Intermediate oil was off by 27 cents, or 0.4%, at $68.96 a barrel, having dropped by 0.6% in the previous session. “A previous price surge that was probably premature, coupled with a stronger U.S. dollar and a correction on the stock markets, are weighing on oil prices,” Commerzbank said. As oil is priced in dollars, a stronger greenback makes crude more expensive for buyers with other currencies. Data showing China’s crude imports were down 14.6% in May on a yearly basis also weighed on prices. “China was taking advantage of low oil prices a year ago, so the base is uncharacteristically high,” oil brokerage PVM noted. Heavy Chinese refinery maintenance...read more...