Brent Crude Oil Continues To Decline Despite Dollar Weakness

Brent crude oil remained near $65 on Wednesday as investors continued to speculate where crude prices would bottom out. The commodity traded at $66.05 at 8:40 GMT with the global supply surplus continuing to weigh.

Brent prices had some relief on Tuesday after the U.S. dollar surprisingly dropped. Analysts believe the dollar was due for a correction as the U.S. currency climbed all the way through October and November. However, commodities priced in dollars, like Brent, gained some support from the greenback’s fall.

Still, the boost was short-lived and crude prices fell back into their downward trajectory soon after. With the overall picture of supply far outpacing demand, most analysts say it is unlikely that any economic event will change the course of crude prices unless the fundamentals change.

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Reuters reported that on Tuesday, Algerian Energy Minister Youcef Yousfi said OPEC may call for an emergency meeting to discuss the commodity’s falling prices ahead of its scheduled June meeting. The cartel decided against a production cut at its meeting in November, which caused the commodity to slide below $70. Saudi Arabia, one of the group’s largest proponents for accepting the lower prices rather than cutting supplies, has been working to increase its market share by discounting crude prices for the United States and Asia. For that reason, it looks unlikely that the nation would agree on a production cut in the future.

With weak global demand growth and falling prices weighing on production, the U.S. Energy Information Administration has lowered its 2015 forecast for U.S. production by 100,000 barrels per day. The revised expectations highlighted the effect that oversupply has had on U.S. domestic production.