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Oil Prices Drop Again
Oil prices are dropping again over the prospects of higher interest rates in the U.S.
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Oil prices are dropping again over the prospects of higher interest rates in the U.S.
Oil futures fell this morning by 76 cents per barrel to $46.88 for the U.S. benchmark (West Texas Intermediate) and 69 cents to $49.23 for the global benchmark (Brent Crude).
Analysts say the already jittery market is responding to signals on Friday by Federal Reserve Chair Janet Yellen that the central bank is ready to raise its overnight lending rate. The concern is that higher U.S. interest rates could strengthen the dollar against other currencies. That would raise the cost of oil, which is priced in U.S. dollars, for traders working in difference currencies.
Futures have ranged from below $40 per barrel to nearly $49 this month. Prices peaked slightly above $60 last summer and were above $100 in mid-2014. Many analysts doubt oil prices will be able to maintain a price higher than $50 per barrel anytime soon, because that price is likely to bring smaller producers back into the market.
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