Oil futures cheaper for a second day on the strengthening of the US dollar and renewed concerns about the global oil market glut.
The dollar index, which measures the greenback against a basket of major currencies, hit session high after the release of US consumer confidence data. The consumer confidence index from the Conference Board rose to 101.1 in August from 96.7 in July. The present situation index rose to 118.8 from 123.0, while the expectations index rose from 82.0 to 86.4. “Consumer confidence improved to its highest level in nearly a year, after a moderate decline in July – Lynn Franco the director of economic indicators in the Conference Board. Consumers estimation on current business conditions as well as conditions in the labor market was significantly more favorable than in July. The short-term expectations regarding business and employment conditions as well as prospects of individuals’ income also improved, suggesting the possibility of a moderate acceleration of growth in the coming months. “
Statements by deputy oil minister of Iran Moazami that the country intends to increase the volume of oil production from 3.8 million barrels / d to 4.75 million, alos put preasure on prices. He added that by the end of this year plans to increase production to 4 mln b / d.
The cost of the October futures for WTI fell to 46.48 dollars per barrel.
October futures for Brent fell to 48.70 dollars a barrel on the London Stock Exchange ICE Futures Europe.