Crude prices sag on strong greenback
On Friday, crude prices sagged under pressure from a strong greenback, though activity was quite low after the American Thanksgiving holiday and also with many investors reluctant to take big new positions ahead of a planned OPEC-led crude production cut to be decided next week.
International Brent crude futures were trading at $48.57, descending 0.9% from their last close. American West Texas Intermediate crude futures were worth $47.59, down 0.8%, from their last settlement.
Market participants told that Friday’s main drag on prices was the strong greenback, which this month reached levels last observed in 2003 against a basket of other key currencies.
A strong greenback, in which crude is traded, makes fuel purchases less affordable for countries utilizing other currencies at home, potentially crimping demand.
Traders told that market activity was relatively low due to the American holiday, while there was a reluctance to opt for big price directional bets due to uncertainty as for the planned crude output cut, led by the OPEC.