Week of June 13, 2016
- Oil prices, after cresting at nearly $52 (Brent) last week, fell in early trading Monday on rising economic concerns in Asia and strengthening in the US dollar.
- Oil is traded internationally in US dollars, and a strong US dollar makes oil imports more expensive for countries using other currencies.
- News reports indicate hedge funds and speculators pulled back from bullish positions in US crude this week for the first time in a month, indicating that oil may fall further.
- The pull-back is being driven by slowing manufacturing activity in Japan and concerns over industrial overcapacity and high debt levels in China.