Oil prices closed lower on Monday, under pressure from the stronger dollar and US crude oil output growth, but oil prices will still record the largest increase in January of five years.

March Brent crude fell $ 1.06, or 1.5%, settled at $ 69.46 a barrel and the daily gain was $ 70.64.

US crude oil futures ended down 0.58 U.S. dollars, or 0.9%, at a settlement price of 65.56 U.S. dollars a barrel.

The dollar fell for six consecutive weeks to boost oil prices, the dollar is expected to drop 3% this month. Crude oil is denominated in U.S. dollars, so a weaker dollar boosted the demand for buyers using other currencies.

The dollar index has been below 90 since January 24, but rebounded 0.3% from the previous Friday to close at 89.31, hitting oil prices.

"A higher dollar prompted some marketers to sell. There are some signs that the rally is likely to be excessive," said Gene McGillian, market research manager at Tradition Energy.

A preliminary Reuters survey on Monday showed analysts expect the U.S. crude oil inventories to increase in the first week of 10 weeks.

On Monday, the Iraqi chief said in London that the oil market is improving. Although the country is trying to increase its oil export capacity, it will comply with the OPEC production cut agreement.

However, OPEC-led efforts to reduce production were offset by North American crude oil production growth.

U.S. oil production has increased by more than 17% since mid-2016 and daily output is expected to exceed 10 million barrels a day.

Shell Hughes, an energy services company, reported that as of January 26, the U.S. energy company added 12 active rigs, adding negative sentiment to the oil market.

<>International oil prices fell due to higher U.S. dollar and higher U.S. producti
<>International oil prices fell due to higher U.S. dollar and higher U.S. producti

 

PREVIOUS:The dollar is up but the euro is going to fall sharply this month        NEXT:Gold prices flat under pressure in the United States bond yields rise