Baghdad: Oil prices declined in early trading on Friday, affected by the rise in the US dollar and expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) may increase their crude oil production in the coming period. Brent crude futures fell 37 cents to $64.07 per barrel, while US West Texas Intermediate (WTI) crude futures fell 39 cents to $60.81 per barrel.

According to National Iraqi News Agency, Brent crude has fallen 2 percent since the beginning of the week, while WTI has lost about 2.7 percent of its value, amid multiple pressures on the market. The dollar’s rise reinforced the decline in prices, as the US currency index rose against a basket of major currencies yesterday, supported by the US House of Representatives’ approval of a bill proposed by President Donald Trump to cut taxes and spending.

A stronger dollar typically increases the cost of purchasing oil for importers outside the United States, reducing demand. Expectations of a further increase in OPEC+ production during a meeting scheduled for June 1 have increased, which in turn has contributed to curbing crude prices.

Recent data also showed a sharp rise in US crude oil inventories this week, placing additional pressure on the market and contributing to the intensification of the downward trend in prices.