The strengthening of the US dollar remains a significant obstacle to the rise of oil prices

Huitong Network1month4Daily News - Wednesday(1month4day)Mid day trading in Asia, USAcrude oilThe price fluctuates narrowly52.50Nearby. Overnight oil prices reversed their intraday gains and plummeted significantly in New York trading, ultimately recording on the first trading day of the New Year2%The decline in price.

Oil prices have fallen from a year and a half high, and a strong US dollar may be the culprit

Previously, US oil and Brent crude oil prices touched intraday2015year7The highest since the beginning of the month, with market expectations for the Organization of the Petroleum Exporting Countries to take effect from Sunday(OPEC)And nonOPECThe agreement between oil producing countries to reduce production will help alleviate the global oversupply situation. The volatility of oil prices has intensified, and the difference between the daily high and low oil prices on Tuesday is11month30The widest in recent days.

The strengthening of the US dollar remains a significant obstacle to the rise of oil prices. The US dollar index touched on Tuesday14Annual high, due to data showing12The monthly growth rate of US manufacturing activity exceeded expectations.

At the same time, the rise in the US dollar exchange rate is also another reason for the decline in crude oil prices, he said. Normally, an increase in the US dollar exchange rate will drivegoldCommodities priced in US dollars such as crude oilfuturesThe price of these commodities has fallen due to the higher cost for investors holding other currencies to buy them.

The 7:00’s ReportCo editor in chief ofTyler Richey"Recently, the prices of crude oil and other energy sources have largely ignored the upward trend of the US dollar exchange rate, and generally speaking, a stronger US dollar will put pressure on the entire commodity market," he said

Tyler RicheyAs we enter a new year, it seems that some traders are adjusting their outlook. In the environment of further appreciation of the US dollar exchange rate, they are becoming less optimistic about the prospect of further increases in crude oil prices in the future. One thing is certain - with2017With the arrival of the year, there is significant volatility in today's market
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