KONTAN.CO.ID - LONDON. Oil retreated on Tuesday after two sessions of gains as uncertainty about the global economic outlook and a firmer dollar countered investor optimism about demand in China and expectations of a drop in U.S. crude inventories. The dollar rose as worries about corporate earnings and the global economic outlook deepened. A stronger dollar makes oil more expensive for buyers holding other currencies and tends to reflect reduced risk appetite among investors. "A recovering dollar is weighing on sentiment," said Stephen Brennock of oil broker PVM. "I suspect that upcoming macro releases concerning U.S. house prices and consumer confidence are also keeping buyers on the sidelines."
Oil Dips as Economic Uncertainty Outweighs China Optimism
KONTAN.CO.ID - LONDON. Oil retreated on Tuesday after two sessions of gains as uncertainty about the global economic outlook and a firmer dollar countered investor optimism about demand in China and expectations of a drop in U.S. crude inventories. The dollar rose as worries about corporate earnings and the global economic outlook deepened. A stronger dollar makes oil more expensive for buyers holding other currencies and tends to reflect reduced risk appetite among investors. "A recovering dollar is weighing on sentiment," said Stephen Brennock of oil broker PVM. "I suspect that upcoming macro releases concerning U.S. house prices and consumer confidence are also keeping buyers on the sidelines."