NEW YORK – Oil prices fell on Monday (Aug 29) as the dollar rose following relatively bullish talk from the US Federal Reserve.
In an address on Friday, US Fed Chair Janet Yellen said there was growing justification for a near-term interest rate hike.
Hopes of an agreement to curtail production when producing countries meet in Algeria next month meanwhile seemed have to faded.
In New York, a barrel of West Texas Intermediate for October delivery fell 66 cents to close at US$46.98.
North Sea Brent also fell 66 cents to settle at US$49.26 per barrel on the Intercontinental Exchange in London.
Prices had rallied earlier in August on hopes that the Russia and Organization of the Petroleum Exporting Countries could agree next to limit production in a bid to balance supply and demand and stabilise prices
Russia, which is not an OPEC member, is due to join next month’s informal meeting in Algeria at which participants are expected to discuss production.
“Market talk seems to have shifted to stances that could spoil an agreement to cap output, with some focusing on Iraq’s recent request for oil companies to boost production,” Timothy Evans of Citigroup said in a client note.
Investors are also aware that Iran hopes to raise output to 4 million barrels per day by the end of next month, he added.