Crude oil prices have fallen following an anticipated increase of US shale output and stronger dollar.
Front-month Brent crude prices dipped 21 cents at $65.31 per barrel, and US crude declined 13 cents at $59.59 a barrel, Reuters reported.
The dollar prices reached one month high, making oil more expensive for buyers in other currencies.
“We believe that should West Texas Intermediate prices remain near $60 a barrel, US producers will ramp-up activity, given improved returns, with costs down by at least 20%.”
Dollar gained strength after US Federal Reserve chair Janet Yellen hinted as a raise interest rates, which will be first since 2006.
Morgan Stanley said that falls in oil prices due to a stronger dollar may be a new trend.
Later this year, a stronger underlying inflation in the US strengthened the Federal Reserve’s case for a rise in interest rates due to the dollar value increasing compared with other major currencies.
Goldman Sachs told the news agency: “We believe that should West Texas Intermediate prices remain near $60 a barrel, US producers will ramp-up activity, given improved returns, with costs down by at least 20%.”
As West Texas Intermediate (WTI) prices are at their high, the recent oil rally according to Timera Energy has lost its momentum.