WSJ: Brent, WTI Crude Extend Losses as US Dollar Strengthens
By Ben Winkley
LONDON--Crude oil futures fell by more than 1% Wednesday, as a strengthening U.S. dollar helped extend April's already heavy losses.
At 1151 GMT, the front-month June Brent contract on London's ICE futures exchange was down $1.07 at $98.84 a barrel.
The front-month May light, sweet crude contract on the New York Mercantile Exchange was trading $1.24 lower at $87.48 a barrel.
As crude oil is priced in dollars, a stronger greenback makes oil more expensive for holders of other currencies. Around 1100 GMT the EUR/USD was at 1.3131, near the day's low.
Macroeconomic headlines continue to be the prime mover for the market, and the U.S. Federal Reserve's Beige Book on current economic conditions will be closely watched later in the session.
Weekly U.S. oil inventory data will be issued later Wednesday and watched for indications about current demand. Last week, the Energy Information Administration reported that crude-oil stocks had climbed to their highest level since July 1990.
A Dow Jones survey of 11 analysts shows stockpiles rose by 900,000 barrels in the week ended April 12, with estimates ranging from a decline of 2 million barrels to a gain of 2.4 million barrels.
