Oil down on stronger greenback, rising U.S. rig count

Reuters

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    MELBOURNE, Sept 20 (Reuters) - Oil prices fell on Monday,
extending losses from Friday after the U.S. dollar jumped to a
three-week high and the U.S. rig count rose, although nearly a
quarter of U.S. Gulf of Mexico output remained offline in the
wake of two hurricanes. 
    U.S. West Texas Intermediate (WTI) crude  CLc1  futures fell
30 cents, or 0.4%, to $71.67 a barrel at 0059 GMT, after
declining by 64 cents on Friday. 
    Brent crude  LCOc1  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 following
a rally on Friday on better-than-expected U.S. retail sales
data. That bolstered expectations the U.S. Federal Reserve will
begin reducing asset purchases later this year.  urn:newsml:reuters.com:*:nL1N2QJ0Y4
    "WTI crude may consolidate over the next few trading
sessions until the trajectory of the dollar is a little
clearer," OANDA analyst Edward Moya said in a note.
    A stronger greenback makes U.S. dollar-priced oil more
expensive for holders of other currencies, curtailing demand. 
    A rise in the U.S. rig count also kept a lid on oil prices.
The oil and gas rig count rose by nine to 512 in the week to
Sept. 17, its highest since April 2020 and double the level from
this time last year, Baker Hughes said on Friday.  urn:newsml:reuters.com:*:nL4N2QJ33V 
    As of Friday, 23% of U.S. Gulf of Mexico crude output, or
422,078 barrels per day, remained shut, the  Bureau of Safety
and Environmental Enforcement reported.  urn:newsml:reuters.com:*:nS0N2P3045 
        

 (Reporting by Sonali Paul; Editing by Tom Hogue)
 ((Sonali.Paul@thomsonreuters.com; +61 407 119 523))

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