Oil Falls to Two-Month Low as US Rig Count Rises, Dollar Firms

(Bloomberg) - Crude fell to a two-month low as a strengthening dollar reduced investor appetite and the rising U.S. oil rig count signaled the output decline may slow.

Futures dropped 1.4 percent in New York. Rigs targeting oil in the U.S. rose by 10 to 351 last week, Baker Hughes Inc. said on its website on June 8. Oil prices swung between gains and losses earlier Monday as the global equity rally and a strengthening dollar gave crude traders conflicting signals. A stronger greenback reduces the appeal of commodities priced in the currency.

"We were whipsawed today," said Phil Flynn, senior market analyst at Price Futures Group in Chicago. "We came in lower on concern about further supply then moved higher as stocks rallied before resuming the move lower. The dollar’s strength is adding to bearish pressure.

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