{"id":60008,"date":"2014-09-08T07:25:54","date_gmt":"2014-09-08T11:25:54","guid":{"rendered":"http:\/\/countingpips.com\/?p=60008"},"modified":"2014-09-08T07:50:32","modified_gmt":"2014-09-08T11:50:32","slug":"strong-dollar-erodes-oil-prices","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/strong-dollar-erodes-oil-prices\/","title":{"rendered":"Strong Dollar Erodes Oil Prices"},"content":{"rendered":"<div id=\"inves-1890490469\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">September 8, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Article by <a href=\"http:\/\/countingpips.com\/contributors\/contributor-profile-forextime\/\">ForexTime<\/a><\/p>\n<p>The strong dollar has eroded the price of oil despite robust demand for distillate fuels ahead of the winter season.\u00a0 International demand is pushing up U.S. exports of petroleum products, primarily from the Gulf Coast. \u00a0According to the Department of Energy year-to-date product exports through June 2014, including gasoline, distillate, and jet fuel averaged 3.7 million barrels per day up 543,000 barrel per day over last year.<\/p>\n<p>Gulf Coast refineries remain extremely competitive in the global market because of access to cost-advantaged inputs, significant upgrading capacity, and proximity to significant demand centers. As a result, the region supplies large volumes of distillate and gasoline to the global market.<\/p>\n<p>Despite higher total U.S petroleum product exports, the East Coast remains reliant on imports to meet regional demand for both gasoline and distillate. Through June, imports of total motor gasoline averaged 536,000 barrels a day, 15% less than in the first six months of 2013. Distillate imports in the first six months of 2014 averaged 217,000 barrels a day, an increase of 72,000 barrels a day from the same period last year, and due in large part to higher demand caused by cold weather this past winter.<\/p>\n<p>Higher demand has not led to higher prices and with the dollar gaining strength, crude oil prices are likely to face headwinds. The dollar jumped on Thursday following an announcement by the European central bank that they are cutting rates.\u00a0 An increasing dollar is disadvantageous to oil prices.\u00a0 Since oil is priced in dollars, a rise in the value of the dollar is offset by a decline in oil prices.<\/p>\n<p>Crude oil prices moved lower and traded below trend line support.\u00a0 Momentum is turning negative with the MACD poised to generate a sell signal.\u00a0 The RSI is printing near 38, which is on the lower end of the neutral range.<\/p><div id=\"inves-3484119007\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p><a href=\"http:\/\/www.forexcircles.com\/wp-content\/uploads\/2014\/09\/oil-090814.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3702\" src=\"http:\/\/www.forexcircles.com\/wp-content\/uploads\/2014\/09\/oil-090814-300x192.png\" alt=\"oil-090814\" width=\"300\" height=\"192\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-54242 alignleft\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2014\/07\/Forex-Time-Logo.png\" alt=\"Forex-Time-Logo\" width=\"262\" height=\"90\" \/><strong>Article by <span style=\"text-decoration: underline;\"><a href=\"http:\/\/countingpips.com\/contributors\/contributor-profile-forextime\/\">ForexTime<\/a><\/span><\/strong><\/p>\n<p><strong>ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 <a href=\"http:\/\/www.forextime.com\" target=\"_blank\">www.forextime.com<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article by ForexTime The strong dollar has eroded the price of oil despite robust demand for distillate fuels ahead of the winter season.\u00a0 International demand is pushing up U.S. exports of petroleum products, primarily from the Gulf Coast. \u00a0According to the Department of Energy year-to-date product exports through June 2014, including gasoline, distillate, and jet [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-60008","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=60008"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60008\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}