2018.02.2100:18:00UTC+00Oil Slides as U.S. Dollar Strengthens

Oil prices edged down on Wednesday, affected by the resurgence of the strength of the dollar which pulled away from three-year lows it hit last week. Traders added that an expected rise in U.S. oil production also weighed on prices.

U.S. WTI crude futures stood at $61.32 per barrel, falling 47 cents or 0.8 percent from their last close. Brent crude futures declined 39 cents or 0.6 percent from their last settlement to $64.86 per barrel.

According to a Reuters analyst, Brent could slide to a range of $63.92 to $64.41 per barrel, as indicated by its wave pattern and a projection analysis.

Traders said the drop in prices were due to a rebound in the dollar, which potentially impacts fuel demand as it makes dollar-denominated commodities such as oil more expensive for countries using other currencies.

The dollar index advanced for a second day on Wednesday, pulling further away from the three-year lows it hit in the previous week as traders reduce bearish bets against the U.S. currency.

Another factor putting pressure on oil prices is surging U.S. output, now the world's second-biggest oil stream at over 10 million barrels per day, only marginally behind Russia and higher than top exporter Saudi Arabia.

The next weekly U.S. oil output data will be released by the EIA on Thursday following a one-day delay due to the President's Day holiday on Monday. It will also cover U.S. stockpile figures that are expected to show crude oil inventories increased 1.3 million barrels in the week to Feb 16.