Oil closes lower, with strong dollar after US and Iran data on radar

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Oil futures contracts closed down on Friday (12).

The commodity went up early in the day, but showed no breath, with the negative movement reinforced after US indicators strengthened the dollar.

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In addition, the possibility of a nuclear deal with Iran was on the radar, with the potential to increase the supply of oil.

WTI crude for September closed down 2.38% (-US$ 2.25), at US$ 92.09 a barrel, on the New York Mercantile Exchange (Nymex), and Brent for October dropped 1.45% (-$1.45) at $98.15 a barrel on the Intercontinental Exchange (ICE).

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In the weekly comparison, WTI advanced 3.46% and Brent rose 3.40%.

On the indicator agenda, the US consumer sentiment index, prepared by the University of Michigan, rose from 51.5 in July to 55.1 in the August preliminary, above analysts’ forecast.

After the data, which brought mixed numbers for inflation expectations, the dollar gained strength.

The movement in the exchange rate makes oil more expensive for holders of other currencies, which tends to reduce investor appetite.

Also in the news, Shell reported that it had paralyzed the activity of platforms in the Gulf of Mexico, due to leaks in oil pipelines. The company, however, said it hoped to resolve the issue by Friday.

European Union diplomats, in turn, proposed new concessions to the Iranian government in order to try to overcome the impasse to revive the nuclear deal with Tehran.

According to a report by The Wall Street Journal, Iran could respond to a demand on concerns from the International Atomic Energy Agency (IAEA) before the agreement takes effect, which could pave the way for a solution to the impasse.

TD Securities said in a report to clients today that supply disruptions from the Gulf of Mexico may provide some relief, but only partially offset the market’s “concern” over a potential nuclear deal with Iran.

Source: CNN Brasil

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