Strong dollar and concerns of oversupply tank oil prices

Oil futures eased in early Asian trade on Friday as oversupply and a strengthening dollar weighed on sentiment, although data showing another fall in U.S. oil output in January offered support, as per Reuters. Front month U.S. crude futures fell to US$38.1. The benchmark rose 4% between January and March, its biggest quarterly gain since June 2015. Brent crude for June delivery fell to US$40.1 a barrel. The dollar index rose in early trading in Friday, rebounding from a mid-October low hit in the previous session. A stronger greenback makes dollar-denominated commodities including oil more expensive for holders of other currencies. U.S. crude oil production fell by 56,000 barrels per day to 9.179 million bpd in January, according to monthly data from the U.S. Energy Information Administration released on Thursday. That was the fourth straight month U.S. domestic oil production had fallen and the lowest output level since October 2014, according to EIA data.
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