MELBOURNE Reuters - Oil prices fell on Friday, extending losses after the U.S. dollar shot to a three-week high and the U.S. rig count rose, although nearly a quarter of the U.S. Gulf of Mexico output remained offline in the wake of two hurricanes.
WTI crude options U.S. West Texas Intermediate dropped to $71.67 a barrel at 0059 GMT Thursday, after costing 64 cents on Friday
Brent crude futures fell 27 cents, or 0.4%, to $75.07 a barrel after losing 33 cents on Friday.
Oil fell with the greenback near a three-week high after a rally on Friday on better than anticipated U.S. retail sales data. That bolstered speculation that the U.S. Federal Reserve will begin reducing asset purchases later this year.
OANDA crude should get stronger over the next few trading sessions until the trajectory of the dollar is clearer, said WTI analyst Edward Moya in a letter.
A stronger greenback makes U.S. dollar-priced oil more expensive for holders of other currencies, untaxing demand.
Another increase in the U.S. rig count also kept oil prices under control. The oil and gas rig count rose in the week to Sept. 17 by nine to 512, its highest since April 2020 and double the level from this time last year, Baker Hughes said on Friday.
As of Friday, 23% of U.S. Gulf of Mexico crude output was shut down or 422,078 barrels per day, the Bureau of Safety and Environmental Enforcement reported.