Sun, 24 Oct 2021

Oil prices drop following upbeat week

21 Sep 2021, 07:05 GMT+10

NEW YORK, Sept. 20 (Xinhua) -- Oil prices fell noticeably on Monday following a winning week.

The West Texas Intermediate for October delivery lost 1.68 U.S. dollars to settle at 70.29 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery decreased 1.42 dollars to close at 73.92 dollars a barrel on the London ICE Futures Exchange.

The slide came as risk assets were under heavy pressure on Monday amid risk aversion sentiment. U.S. equities closed sharply lower with the Dow shedding over 600 points.

Oil prices were also facing headwind from a firm U.S. dollar, which has been showing signs of strength ahead of the Fed's meeting.

The dollar index, which measures the greenback against six major peers, increased 0.09 percent to 93.2760 in late trading on Monday, notching a three-day winning streak.

Historically, the price of oil is inversely related to the price of the U.S. dollar.

For the week ending Friday, the U.S. crude benchmark rose 3.2 percent, while Brent climbed 3.3 percent, based on the front-month contracts.

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