21.03.201405:09:40UTC+00Oil plunges close to $98 as demand folded

Oil prices prolonged losses on Friday as seasonal upkeep of refineries crimped US demand and a firmer dollar makes the commodity more expensive.

Benchmark US crude to be delivered in May went down 58 cents at $98.32 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 27 cents to set at $98.90 on Thursday. Traders magnified the data that showed the US crude supplies escalated by almost 6 million barrels in the week ended on March 14. Oil production keeps on increasing but refineries are converting less of it to gasoline and diesel due to on-going seasonal maintenance.

The US dollar strengthened versus the euro and other currencies when Federal Reserve Chair Janet Yellen suggested interest rate hike might happen after the Fed ends its stimulus policy. 

Brent crude, used to fix prices for international mixtures of crude, dived 31 cents to $106.14 per barrel.