The rise in oil prices fell because of a weaker dollar offset yield prediction of Russia

March Brent crude futures set Tuesday (January 17th) fell $0.22, or 0.20%, to settle at $55.48 a barrel in March; U.S. crude oil futures set up $0.16, or 0.34%, to $53.33 a barrel.

The highest intraday rally Tuesday by oil prices down, because the United States and Russia oil producers later this year will increase the yield estimates, offsetting the decline of the dollar and Saudi Arabia said it would comply with the organization of Petroleum Exporting Countries (OPEC) cut promises to boost.

The dollar against a basket of currencies fell to near six week low, after the U.S. President elect Trump said the dollar is too strong, is not conducive to the competitiveness of the u.s.. A weaker dollar makes dollar denominated oil for other holders of money more cheap.

PSW Investments managing partner Phil Davis said, “in fact, oil than it seems to be weak, because is was boosted by the dollar’s fall,”

Earlier Tuesday, oil prices have some support, the main crude oil exporter Saudi Arabia Saudi Arabia said, will strictly abide by an agreement between OPEC and Russia and other non members of the OPEC production agreement. Under this agreement, OPEC and Russia and other non OPEC oil producers will cut nearly 1 million 800 thousand barrels a day, the first implementation of six months, to help restore the balance of supply and demand.

According to the data handling and industry sources, January up to now, southern Iraq’s oil export terminal is reduced, showed that OPEC second producers are performing production agreement. But oil prices from the highs, because the United States and Russia is expected to increase in production, the market for OPEC overall commitment to reduce supply comply with doubt.

According to a Reuters survey, analysts expected the end of June global production in 2017 after the expiry of the agreement, Russia’s crude oil production will reach a record high after the Soviet era. Energy consultant Ritterbusch&Associates President Jim Ritterbusch said in a report: “Libya, Iran, Iraq and Nigeria oil production strong and increasing production effect of Russia will be reduced by OPEC/,”