Global crude oil prices extended losses into a fourth day on Tuesday, their longest losing streak since March, pressured by strengthening dollar and uneven US economic recovery. The international benchmark Brent for October delivery dropped 48 cents to $69.03 per barrel, while US WTI for September settled at $68.59 per barrel. A stronger dollar curbed the appeal of commodities priced in the currency.
US retail sales declined in July by more than anticipated, while factory output rose the most in four months. Data from China on Monday pointed to a slowdown in the world’s second-largest economy last month. Meanwhile, data from the American Petroleum Institute showed US crude inventories dropped 1.16 million barrels. Official data on US oil stockpiles is due to be released on Wednesday.
Despite risks from the COVID-19 delta variant, OPEC and its allies have stayed on track to relax their coordinated supply curbs imposed last year. These producers are set to increase supplies by 400,000 bpd this month. Despite US President Joe Biden’s call to increase output to ease rising gasoline prices, OPEC+ is unlikely to accelerate the production boost due to price softening.
