LONDON — World oil prices fell on Tuesday as traders mostly took their cue from the rebounding US dollar, dealers said. In early afternoon London deals, Brent North Sea crude for July reversed 66 cents to $64.86 per barrel, compared with last Friday's closing level. US benchmark West Texas Intermediate (WTI) for delivery in July fell 29 cents to $59.43 a barrel. "Crude oil prices remained under pressure... as the US dollar continues its strong upside momentum," said Myrto Sokou, senior energy analyst at the Sucden brokerage in London. The stronger greenback makes dollar-denominated commodities, like crude oil, more expensive for buyers using weaker currencies. That tends to dampen overall demand and pull prices downwards. "The main factor weighing on (oil) prices is the significantly appreciating US dollar," agreed Commerzbank analysts in a note to clients. The dollar powered to a fresh eight-year high against the yen on Tuesday, while the euro was weighed by growing concerns about Greece's bailout talks as a repayment deadline looms. In addition, the US currency has also been underpinned by expectations the Federal Reserve will raise interest rates in the coming months -- a view supported by comments from Fed chief Janet Yellen who said Friday she expects a hike at some point this year. Futures slid as much as 1.8 percent in London. The dollar strengthened to a four-week high against the euro following comments from U.S. Federal Reserve Chair Janet Yellen on May 22 that it would be “appropriate” to raise interest rates this year if the economy improves. Iraq's prime minister pledged a swift recapture of the city of Ramadi from Islamic State militants, while in Saudi Arabia King Salman vowed to punish those responsible for a suicide attack on Shiite worshipers. Oil's recovery from a six-year low in January has stalled this month amid speculation rising prices will encourage output from shale formations, while US supply remains near a record. The Organization of Petroleum Exporting Countries, which pumps 40 percent of the world's oil, is seen sticking with its strategy of favoring market share over supporting prices when it meets next week. “Brent is not falling off a cliff, but being dragged lower by the strong dollar,” Bjarne Schieldrop, chief commodities analyst at SEB AB, said by e-mail from Oslo. “Unrest in the Middle East and North Africa support the price.” Brent for July settlement fell as much as $1.20 to $64.32 a barrel on the London-based ICE Futures Europe exchange and traded at $64.36 at 2:15 p.m. local time. — Agencies
