Oil edges lower as summer rally takes a pause amid rising dollar
BNN Bloomberg
Oil slipped as a gaining dollar helped to cool the market after the biggest monthly advance since early 2022.
West Texas Intermediate dipped toward US$81 a barrel, hampered by a rising greenback which weighs on commodities priced in the currency. Crude surged last month with gains underpinned by signals that demand is running ahead of supply after OPEC+ reduced output. In addition, with U.S. inflation cooling, there's renewed speculation that the world's biggest economy can avoid a recession.
There are reasons to be cautious about a further rally in the short-term. The biggest oil exchange-traded fund posted a record daily outflow recently, as investors take profit from crude's stellar run. Oil's climb has also left it close to being technically overbought.
