Oil hit by strong dollar, jitters over supply glut

London

OIL prices sank last week to one-month lows on the back of the strong dollar and global supply glut fears, ahead of the Organization of the Petroleum Exporting Countries (Opec) cartel output meeting this week. The rising greenback makes dollar-denominated commodities more expensive for holders of other currencies. That tends to dent demand and prices.

Meanwhile the Opec, which pumps about 30 per cent of global crude, meets on June 5 for a production gathering in Vienna.