Investing.com - U.S. oil futures moved sharply lower on Friday, as investors locked in gains from the commodity’s recent rally to multi-month highs and as U.S. dollar strength weighed, although global supply disruptions continued to lend support.
U.S. crude futures for July delivery tumbled 1.56% to $49.78 a barrel, after hitting an 11-month peak of 51.67 on Thursday.
On the ICE Futures Exchange in London, the August Brent contract lost 1.37% to $51.26 a barrel, not far from the previous session’s eight-month high of 52.84.
Oil prices weakened as the U.S. dollar regained som ground after the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending June 4 decreased by 4,000 to 264,000 from the previous week’s revised total of 268,000.
Analysts had expected jobless claims to rise by 3,000 to 270,000 last week.
Sentiment on the greenback remained vulnerable however, as markets pushed back expectations on the timing of the next rate hike by the U.S. central bank after last week’s dismal employment report for May, which showed the slowest rate of jobs growth since September 2010.
In addition, a speech by Federal Reserve Chair Janet Yellen on Monday indicated that interest rates won’t rise until uncertainty over the economic outlook is resolved.
Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.
Crude was still supported by output disruptions around the world, due to Canadian wildfires, sabotage in Nigeria, and production cuts in the U.S.