Fall in crude as OPEC output surges and dollar strengthens

30-Aug-16

Crude oil have seen a dip that has wiped the gains of the previous 2 sessions. Brent crude fell 0.66 cents to US$49.2 a barrel while U.S. crude was down 66 cents at US$46.9. The main trigger for this has been surging Middle East crude output and a stronger dollar that was boosted by speculation of a U.S. rate hike by the year-end. Iraq's oil minister says that the country has exported more crude from its southern ports in August, and will continue to ramp up output. Saudi Arabia also continues to keep output at almost record levels this month. This week saw the dollar spike to a three-week high against the yen after Federal Reserve Chair Janet Yellen bolstered expectations that the central bank would raise interest rates soon.