MoneyNewsTop News

Oil falls as dollar rises but Iran fears losses

UNITED STATES (OBSERVATORY) –¬†Oil prices fell more than 1 percent on Tuesday as the dollar remained near a four-month high, but fears that US President Donald Trump would withdraw from a nuclear deal with Iran have supported the market.

The dollar has risen to gains since the beginning of 2018 against a basket of other currencies, which increases the cost of oil denominated in US currency to holders of other currencies.

Brent crude for the July delivery contract fell $ 1.56, or 2.1 percent, to settle at $ 73.13 a barrel. June was settled on Monday after rising 53 cents to settle at $ 75.17.

US WTI crude for June delivery lost $ 1.32, or about 2 percent, to settle at $ 67.25 a barrel.

Oil prices rose on Monday after Israeli Prime Minister Benjamin Netanyahu offered what he called evidence of a secret Iranian nuclear weapons program. Tehran has consistently denied seeking nuclear weapons.

But analysts said the lack of solid evidence contributed to falling prices. Olivier Jacob of Petromatrix said the announcement was “not new” and then the market lost some gains on Monday.

“This shows how far the market has taken into account that Trump will not extend the lifting of sanctions,” he said.

Trump gave Britain and France Germany until May 12 to repair what he sees as shortcomings in the 2015 nuclear deal or else he will re-impose sanctions.