Oil Prices Fall as Saudi Supply Risks Abate, Stronger Dollar

Oil prices fell on Tuesday, reversing earlier gains, on receding fears of a supply disruption in Saudi Arabia, the worlds biggest oil exporter, after an attack on its export facilities, and on concerns a stronger U.S. dollar would crimp demand.

Prices rose earlier on expectations of a recovery in the global economy after the U.S. Senate approved a 1.9 trillion stimulus bill and on a likely drawdown in crude oil inventories in the United States, the worlds biggest fuel consumer.

Brent crude futures for May fell by 46 cents, or 0.7, to 67.78 a barrel by 0736 GMT, after earlier rising to a session high of 69.

U.S. West Texas Intermediate WTI crude for April slipped by 52 cents, or 0.8, to 65.53, after earlier rising to as high as 65.68.

Crude prices are declining as the strong dollar trade shows no signs of weakening, said Edward Moya, senior market analyst at OANDA.

The massive stimulus that is about to get passed in the U.S. will continue to drive inflation expectations higher and that will mean a stronger dollar in the shortterm will weigh on commodities.

Dollardenominated oil prices typically fall when the greenback strengthens since the commodity becomes more expensive for buyers paying in other currencies.

U.S. Treasury Secretary Janet Yellen said on Monday that President Joe Bidens 1.9 trillion coronavirus aid package will provide enough resources to fuel a very strong U.S. economic recovery. The House of Representatives must still pass the Senate version of…

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