Oil prices slide under pressure from supply and strong dollar

Oil prices fell on November 5 as the US dollar strengthened and investors assessed supply prospects.

Workers work at an oil refinery in Wasit province, Iraq. Photo: THX/TTXVN

At 2:06 p.m. on November 5 (Vietnam time), Brent crude futures fell slightly by 6 US cents (0.09%) to $64.38 a barrel, after hitting a near two-week low in the previous session. US West Texas Intermediate (WTI) crude also fell by 7 US cents (0.12%) to $60.49 a barrel.

ANZ bank analysts said that risk aversion in markets has caused investors to withdraw from the energy market.

Oil prices were also under pressure as the US dollar index, a gauge of the greenback's strength against a basket of major currencies, held steady at a three-month high. The greenback's strength was bolstered by divisions among US Federal Reserve officials as the central bank is unlikely to cut interest rates at its December meeting.

A stronger US dollar makes dollar-priced oil more expensive for holders of other currencies, thereby affecting demand.

Another factor that put pressure on oil prices was the information that the American Petroleum Institute (API) said that the country's crude oil reserves increased in the week ending October 31.

Supply concerns also continue to weigh on oil prices. The Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC producers (OPEC+) agreed on November 2 to increase production by 137,000 barrels per day in December, while also deciding to suspend further production increases in the first quarter of 2026. However, analysts say the suspension is unlikely to provide real support for oil prices in November and December 2025.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-truot-doc-duoi-suc-ep-tu-nguon-cung-va-dong-usd-manh-20251105154137404.htm