MANTHANTIPS:- Oil prices sink as stronger dollar, fading supply freeze hopes weigh
Oil prices fell sharply during European hours on Monday, as a broadly stronger U.S. dollar and fading hopes of a production freeze weighed on sentiment. Crude oil for October delivery on the New York Mercantile Exchange slumped 76 cents, or 1.6%, to trade at $46.88 a barrel by 3:57AM ET (07:57GMT).Meanwhile, on the ICE Futures Exchange in London, Brent oil for November delivery declined 79 cents, or 1.58%, to trade at $49.36 a barrel. Oil’s losses came as the U.S. dollar climbed to a two-week high following hawkish comments from two top Federal Reserve officials that hinted at a potential U.S. interest rate hike as early as next month. Fed Chair Janet Yellen said Friday at a gathering of central bankers in Jackson Hole, Wyoming, that the case for an increase was strengthening, while Vice Chairman Stanley Fischer indicated a tightening is possible at the next review in September. An increase in U.S. interest rates tends to lift the dollar, which would make oil more expensive for traders who conduct business in other currencies. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, jumped to a daily peak of 95.69, the most since August 15. It was last at 95.65 early on Monday. Meanwhile, chances that the upcoming meeting among major oil producers in late September would yield any action to reduce the global glut appeared minimal after Iran said it would only cooperate in talks to freeze output if fellow exporters recognized its right to fully regain market share. Last week, Saudi Arabia’s Energy Minister Khalid al-Falih said that he does not believe any “significant intervention” in the oil market is necessary.