Oil prices fall on firmer U.S. dollar
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $61.12 a barrel at 01.02 GMT, down 56 cents, or 0.9 percent, from their last settlement.
Brent crude futures LCOc1 had dropped 50 cents, or 0.8 percent, from their last close to $64.92 per barrel.
“The firming dollar continues to thwart investor sentiment despite the bullish inventory data,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA.
Since oil trading is conducted in dollars, a rise in the greenback makes fuel imports for countries using other currencies domestically more expensive, potentially curbing demand.
The firm dollar outweighed a reported fall in U.S. crude inventories.
“Improved pipeline infrastructure to the Gulf coast and the decreased supply via TransCanada’s Keystone pipeline, sent ... inventories tumbling,” Innes said.