Crude oil fell for a second day after the first increase in U.S. drilling rigs this year, sparking losses in currencies of commodity-producing nations and shares of miners and energy companies.
West Texas Intermediate oil fell further below the three-month high reached last week, pulling down the Bloomberg Commodity Index. The South African rand and Norwegian krone were among the biggest casualties in currencies as the dollar extended its rebound into a second day after slumping to a five-month low last week. The Stoxx Europe 600 Index erased earlier losses.
The number of rigs targeting oil fields in the U.S. rose by one last week, ending a 12-week decline and adding to speculation that a recovery in crude prices will bolster production. The greenback’s stabilization has also diminished the appeal of oil and other commodities priced in the U.S. currency.
“A lot of the movement in oil recently has been dollar-driven,” Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney. “The oil market needs a stronger economic performance in order to spur demand and absorb all that oil supply.”
WTI futures fell 1.2 percent to $38.95 a barrel as of 9:37 a.m. London time, after sliding 1.9 percent on Friday to trim their fifth straight weekly advance to 2.4 percent. The Stoxx Europe 600 Index rose 0.3 percent after earlier falling as much as 0.9 percent.