New York’s West Texas Intermediate (WTI) crude futures ended negative on Friday, June 10, with markets pressured by the dollar’s gains on higher-than-expected US inflation data.
- WTI crude oil contract for delivery in July It was down 84 cents, or 0.7%, at $120.67 a barrel. but rose 1.5% this week.
- Brent crude oil contract (BRENT) for delivery in August. It was down $1.06, or 0.9%, at $122.01/barrel. but rose 1.9% this week.
Oil prices face pressure As the dollar surged following the disclosure indicates that US inflation rose more than expected in May.
The dollar index, which measures the dollar’s movement once morest six major currencies in a basket of currencies, rose 0.88% to 104.1440 on Friday, following gaining 0.68% on Thursday.
The strength of the dollar caused the crude oil contract, which was priced in dollars. It is more expensive and less attractive to investors holding other currencies.
dollar strengthens After the US released the consumer price index (CPI) that was higher than expected. This may lead the US Federal Reserve (Fed) to accelerate interest rates more to curb inflation.
The Labor Department said Friday (June 10) that the CPI, a measure of consumer spending inflation, rose 8.6 percent in May year on year. That was a new high in more than 40 years, or since 1981, and beat analyst expectations of 8.3 percent.
The CPI was above 8.3 percent in April and above 8.5 percent recorded in March. which is the highest level since Dec. 1981
In addition, the CPI rose 1.0 percent in May month-on-month. The benchmark CPI, excluding food and energy, rose 6.0 percent in May year-on-year. The benchmark CPI rose 0.6% in May, above expectations of 0.5%.
By InfoQuest News Agency (11 Jun 65)
