Oil prices are off about 1% in early trading Friday as the US dollar continues to gain strength. Brent crude is down to around $82 a barrel while WTI futures are near $80 a barrel. Both are expected to end the week lower.
The dip comes as the US dollar is hovering near a 16-month high as more investors are expecting the Fed to hike interest rates. Investors also taking in supply and demand prospects after OPEC lowered its worldwide demand forecast for 2021, saying that there was weaker demand in China and India. Meanwhile, President Joe Biden is reportedly considering releasing some oil from the Strategic Petroleum Reserve.
And stock futures are flat as investors await some data that may give insight into the mood of consumers these days. The University of Michigan is set to release its preliminary report on consumer sentiment for the month of November. The last report showed sentiment remained at near decade lows, but investors are hopeful for a small rebound this month.
