Oil prices dropped on Monday as Iranian exports undermined the efforts of OPEC oil producers to decrease production and to limit the global supply. Iran has sold more than 13 million barrels of oil that were stored on tankers at sea, an effort to take advantage of the production cut proposed by OPEC in November. Oil prices may also have been affected by the stronger dollar.
U.S. oil drillers also increased activity for the 10th consecutive week, as crude prices remained at profitable levels for continued drilling. U.S WTI crude oil futures fell 29 cents to trade at $53.70 per barrel during Monday’s Asian session. Brent crude futures were down 26 cents from Friday’s close to trade at $56.84.
Currency Updates
The dollar continued to strengthen against the yen on Monday trading at 117.47, nearly 2 percent higher than Friday’s lows. Japanese stock markets were closed on Monday for a holiday, while other Asian markets searched for gains. The euro remained steady on Monday, trading at $1.0534, just near the middle of last week’s trading range. The dollar index remained flat at 102.22 .DXY, also near the middle of last week’s trading range. With the dollar strong and U.S. stock markets trading near all-time highs, traders are anticipating a break of the support levels to take markets higher or a reversal which could send markets broadly lower. All eyes are on President-elect Donald Trump’s press conference which will be held this Wednesday, as a key to which way the market will turn, if it doesn’t move earlier.