Oil futures slipped in Asian trade on Friday after hitting resistance at the $50 a barrel mark as investors worried higher prices could reactivate shuttered crude output, adding to global oversupply, Reuters reported.
Prices were also pressured by a strong dollar that was buoyed by generally positive U.S. economic data amid growing expectations of a near-term rate hike, according to Reuters.
Brent LCOc1 fell 34 cents, or 0.7%, to $49.25 by 0652 GMT on Friday, retreating further from the previous session`s $50.51 peak, its highest since early November.
U.S. crude CLc1 dropped 31 cents, or 0.6%, to $49.17 a barrel after touching $50.21 on Thursday, it`s highest since early October, according to the report.
Oil pushed through $50 for the first time in around seven months on Thursday after supply disruptions from Canadian wildfires and attacks in Libya and West Africa helped cut daily output by 4 million barrels, but eased to close down on the day, Reuters writes.
”In the next few months oil prices could stay in the high $40-$50 mark. We are entering the U.S. driving period so seasonal demand might provide underlying support to oil prices,” said Yvanne Lai, senior analyst at National Australia Bank.
Investors are also awaiting the appearance of U.S. Federal Reserve Chair Janet Yellen at an event later on Friday for further indications on when the Fed could raise interest rates, as noted in the report.
A meeting of the oil producer`s cartel, the Organization of the Petroleum Exporting Countries on June 2 may give further direction to oil markets, according to Tony Nunan, oil risk manager at Tokyo`s Mitsubishi Corporation.
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