Oil prices inched down on Monday as concerns of higher-for-longer interest rates resurfaced and lifted the dollar, offsetting support for oil markets from geopolitical tensions and OPEC+ supply cuts.
Brent crude futures slipped 5 cents to $85.19 a barrel by 04:17 GMT, after settling down 0.6% on Friday. U.S. West Texas Intermediate crude futures were at $80.66 a barrel, down 7 cents.
“The U.S. dollar has opened bid this morning and appears to have broken higher following better U.S. PMI data on Friday night and political concerns ahead of the French election,” said Tony Sycamore, a Sydney-based markets analyst at IG.
A stronger greenback makes dollar-denominated commodities less attractive for holders of other currencies.
The dollar index, which measures the greenback against six major currencies, climbed on Friday and was up slightly on Monday after purchasing managers index data showed U.S. business activity was at a 26-month high in June.
