Oil continues losing ground after surprise comments from Iran about increasing output.
WTI Oil snaps below $78 and looks set to head to $75.
The US Dollar Index ticks up with help from the Japanese Yen and market uncertainty.
Oil prices sank more than 1.5% in Wednesday’s European session, with West Texas Intermediate (WTI) US crude prices reaching their lowest levels in almost two months. Markets are not responding well to the headline that Iran plans to add between 300,000 and 400,000 barrels per day in its production for this year, reported by Bloomberg on Wednesday. The confirmation came from Iranian Oil Minister Javad Owji on state TV, and means mayhem for the next OPEC meeting, where prolonging production cuts is the topic of discussion.
Meanwhile, the US Dollar Index (DXY) is grinding higher this week, posting gains for a third consecutive day, in joint cooperation with the USD/JPY pair, where the Japanese Yen (JPY) has already devalued half the move it gained on the Japanese interventions over the past two weeks. The underlying bullish tone around the US Dollar (USD) might continue to weigh on Crude Oil prices
Crude Oil (WTI) trades at $77.01 and Brent Crude at $81.92 at the time of writing.
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