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Crude oil prices fell in Asian trade today, but analysts said losses were capped by a weakening dollar while dealers await fresh trading cues.
US benchmark West Texas Intermediate for November delivery dropped eight cents to USD 90.26 while Brent crude for November eased two cents to USD 92.77 in late-morning trade.
Singapore’s United Overseas Bank said crude oil prices retained support due to a “dollar weakness” this week.
The US dollar has slipped against other major currencies on profit-taking after surging Friday to multi-year highs against the yen and euro following a strong September jobs report.
The greenback stood at USD 109.13 in morning Asian trade today, slightly up from USD 108.75 on Monday but much lower than the levels above 110 yen it hit last week.
As oil is traded in the US currency, a weaker dollar makes the commodity cheaper for global buyers, spurring demand and boosting prices.
UOB said investors will next be scrutinising the minutes of a two-day Fed meeting that ended on September 17 for clues about when the central bank will raise short—term interest rates next year.
The three-day annual meetings of the World Bank and the International Monetary Fund that start on Friday in Washington will also be keenly watched, analysts said.
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