Oil slips below $61 with dollar climbing and OPEC+ meeting ahead
Oil fell beneath $61 a barrel in New York, hampered by a stronger dollar, as traders weighed risks to the demand recovery ahead of OPEC+’s ministerial meeting this week.
West Texas Intermediate slid 1.7%, while the greenback was stronger, making commodities priced in the currency less attractive. Treasury yields also climbed. While fuel consumption is rising in many parts of the world, risks remain, with the head of the UX Centers for Disease Control and Prevention warning of “impending doom” as cases and deaths in the country pick up.
Oil is poised to close out a fourth quarterly advance on Wednesday, but the past week has seen volatility climb amid the Suez Canal blockage. All eyes are now on the Organization of Petroleum Exporting Countries and its allies, whose ministers gather Thursday to decide output policy for May and possibly beyond, and are expected to maintain tight curbs to deplete global inventories further.
