Oil prices move higher over dollar price concerns

Oil prices retreated on Monday following a three-weeks rise in prices, over concerns and anticipations of a new rate surge, as the Brent crude eased reaching $84.58 a barrel, while West Texas Intermediate also fell to $79.74.

Prices have increased more than 6 percent after OPEC+ countries announced production cuts last week starting from May. Concerns over supply decrease were balanced by concerns over demand decrease.

U.S. employment report released on Friday indicated labour market is to remain tight. This, in turn, caused dollar price rise and fuelled anticipations of the Federal Reserve increasing interest rates again.

Federal’s rate hikes have implications on global economy and affects oil markets in specific. Higher dollar price can affect demand negatively, given it makes crude more expensive for holders of other currencies.

Jim Ritterbusch, president of Ritterbusch and Associates in Illinois told Reuters it is expected inflation data reported by CPI and PPI will influence this week’s trade. Ritterbusch anticipated it “will likely revive the spectre of higher interest rates.”