Global oil prices fell again on Monday after U.S. data sparked fresh concerns about a slowdown in the global economy and rising crude supplies in the United States.
Over the past couple of weeks, oil markets experienced a positive outcome as prices rose to $64 a barrel, following supply cuts by the OPEC countries, especially Saudi Arabia, as well as sanctions against Venezuela’s oil exports.
But this rise was short-lived as prices fell again on Monday.
Brent crude oil, the global benchmark for oil, had hit $63.30 a barrel before the start of the trade on Monday – the highest since early December, but as the trading started Brent lost 24 cents to stand at $62.51 around 1:30 p.m. ET.
On the other hand, West Texas Intermediate crude also experienced its best intra-day high of $55.75, since November 21, 2018. But it was down by 75 cents or 1.4% to stand at $54.51 around 1:30 p.m. ET.
According to market analysts, it is possible that the currency strength of the U.S dollar is responsible for this fall in oil prices, as it gets more expensive for holders in others currencies whose strength does not match up.
Further, persistent trade dispute between U.S and China may also be responsible for the pressure on oil prices, according to some analysts. However, this is somewhat foiled by the OPEC deal of cutting down excess oil supplies as well as sanctions on Venezuela’s exports.