Oil prices eased today, a day after the rallying dollar sparked the market's sharpest decline in four weeks, as traders waited to see whether the US Federal Reserve would signal an end to its interest rate cuts
Oil prices eased today, a day after the rallying dollar sparked the market's sharpest decline in four weeks, as traders waited to see whether the US Federal Reserve would signal an end to its interest rate cuts.
Prices are also under pressure after Nigerian unions started talks with ExxonMobil to end a six-day strike that shut in 800,000 barrels per day of production, and on expectations of a rise in weekly US crude stocks.
US light crude for June delivery lost 6 cents to $115.57 a barrel by 0615 GMT, deepening yesterday's more than $3, or 2.6%, slump to stand well below Monday's $119.93 record high.
London Brent crude shed 2 cents to $113.41 a barrel.
The Federal Reserve is expected to make a modest quarter-point cut in interest rates at today's meeting, but traders are also expecting it to signal a pause in its rate-cutting campaign, supporting the battered dollar.
The US currency jumped to a one-month high versus the euro yesterday, dealing a blow to commodities, which have rallied as investors hedge their bets against inflation. The dollar was broadly steady today.
Ahead of the Fed decision, traders will be looking towards weekly US inventory data for signs of gasoline stocks extending their recent steep declines ahead of the summer driving season, and whether crude inventories keep steady despite Opec curbs.
