Oil drops in Asia as Supply Disruption Fears Fade
benchmarks on both sides of Atlantic failed to keep up the rebound and
dipped in the Asian trades this Friday as stronger US dollar before US
jobs data overshadowed supply concerns.
Oil eyes USD moves ahead of NFP
Currently, both crude benchmarks are seen in the red, with WTI down -1.02% at $ 43.86 while Brent oil dips -0.84% to trade at $ 44.65. Oil prices resumed the recent downtrend, reversing a temporary reversal witnessed in the previous session, as the US dollar firmed across the board heading into the US payrolls release, with markets expecting a robust print to bring June Fed rate hike back on the table. A stronger greenback makes dollar priced-in oil more expensive to the holders in other currencies.
Moreover, oil markets appear to shrug-off worries over raging forest fire in Canada, which led to a shutdown of many oil production facilities in the region and triggered supply disruption fears.
Apart from the US jobs report, markets also await the Baker and Hughes US rigs count data for further incentives on the black gold.