A stronger U.S. dollar started oil on the wrong foot Thursday, but news of President Donald Trump's plan to implement new tariffs on Chinese goods fueled worries over a slowdown in the global economy and energy demand, pushing prices to their lowest finish since June.
The U.S. dollar had strengthened earlier to a two-year high, after the Federal Reserve on Wednesday signaled that it might not be as aggressive as traders had expected in delivering further interest rates cuts, following its first cut in more than a decade. The stronger dollar pressured commodity prices across the board.
West Texas Intermediate crude for September delivery fell $4.63, or 7.9%, to settle at $53.95 a barrel on the New York Mercantile Exchange. That was the largest front-month contract percentage decline since Feb. 4, 2015 and lowest settlement since June 19 of this year, according to Dow Jones Market Data.
October Brent crude lost $4.55, or 7%, to end at $60.50 a barrel on ICE Futures Europe, the lowest front-month contract finish in roughly seven weeks.
Source : MarketWatch