Oil prices fall on strong dollar, Brent near one-month low

[TOKYO] Oil prices on Monday extended declines from the end of last week on the back of a stronger dollar, with Brent crude falling to its lowest in nearly a month.

Other markets dropped as investors were spooked by Friday's US payrolls report which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations .

That drove the greenback higher, which puts pressure on oil as the commodity is priced in dollars.

Brent was down 75 cents, or 1.1 per cent, at US$67.83 a barrel at 0033 GMT, after falling 1.5 per cent on Friday.

US West Texas Intermediate (WTI) crude declined 66 cents to US$64.79, after dropping 0.5 per cent in the previous session.

An index of the dollar against a basket of currencies rose to as high as around 89.38, approaching peaks reached on Friday, after the report showed US jobs growth surged in January and wages rose, clocking up their biggest annual gain in more than 8-1/2 years.

Rising US oil production is also pushing down prices, undermining attempts by the Organization of the Petroleum Exporting Countries (Opec) to support prices.

Data from the US government last week showed that output climbed above 10 million barrels per day in November for the first time since 1970, as shale drillers expanded operations after gains in oil prices last year.

REUTERS