Oil extended losses as the dollar strengthened and investors shrugged off an attack on the world’s largest crude terminal in Saudi Arabia.
Global benchmark Brent futures fell as much as 2.3% on Monday after earlier surging above $71 a barrel, the highest since January 2020. The Bloomberg Dollar Spot Index rose as much as 0.5% on Monday, reducing the appeal of commodities priced in the currency. Meanwhile, the market looked past an assault on a storage tank farm at the Ras Tanura terminal on Sunday, with Saudi Arabia saying the attack was intercepted and oil output appeared to be unaffected.
“There was a big ripper this morning, but the fundamentals that got it there evaporated in the face of a successful defense,” said Bob Yawger, head of the futures division at Mizuho Securities. The market is also “shedding some length here against this extended position.”
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