Oil prices are falling because of the rise of the dollar and the abundance of supply

Brent crude fell below $ 66 a barrel on Tuesday due to the rise of the dollar and signs of the abundance of supplies from the Middle East despite the wars in the north of Iraq, Syria and Yemen.

The dollar rose to its highest level in nearly a week against a basket of currencies, recovering from its lowest level in four months, which makes oil and other commodities denominated in the US currency more expensive for holders of other currencies.

Oil rose on Monday on fears of Middle East supply disruptions due to the escalation of fighting in the region but the data pointed to increased production from the Gulf region.

The decline in Brent crude July delivery of $ 1.04 to $ 65.23 a barrel before recovering to around $ 65.90 by 1110 GMT. US light crude fell 40 cents to $ 59.03 a barrel.

Official data showed on Monday, rising Saudi Arabia's exports of crude in March to their highest level in nearly a decade with the Kingdom to increase production to record levels.

The continuing improvement in oil prices?

In turn, Kuwait's oil minister «Ali Al-Omair» said Tuesday it is not clear how long oil prices will continue to improve because it depends on global economic growth and the continuing increase in the supply of crude oil in the market.

He said «Omair» in response to a question in parliament, told reporters about his expectations for oil prices in the second half of this year «As we have said before (prices) will be improved and we thank God that we can see it .. improvement we can see now».

He added that the continued improvement in the price of oil depends on the growth of the world economy and the abundance of supply that still exist in addition to the shale oil production.

He declined «Omair» comment on what OPEC can take decisions in the upcoming meeting on the fifth of June next.

The delegate of Kuwait OPEC «Nawal Fezia» she told reporters yesterday that the current surplus of oil in global markets comes because of shale oil production and the decline in global demand and not increase the production of the organization.

And predicted «Fezia» occurrence of the oil market balance in the second half of this year, and not low prices in that period.