Oil Slumps With Stronger Dollar Cooling OPEC-Fueled Rally
- Bloomberg Dollar Spot Index rose, prompting commodity selloff
- Biden team spoke to Saudis, UAE on OPEC talks and oil prices
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Oil fell the most since late May as a stronger dollar spurred a broad sell-off across the commodities complex while uncertainty over OPEC’s next move loomed large in the markets.
Futures in New York slid 2.4% on Tuesday. The U.S. dollar rose, making commodities priced in the currency less attractive to investors. The pullback in crude is a stark reversal from earlier in the session when futures soared to a six-year high amid an escalating fight between Saudi Arabia and the United Arab Emirates that has pushed OPEC+ into crisis and blocked a potential increase in oil supplies next month.