Oil prices ended a three-day bull run on Friday, falling as a strong dollar weighed and investors cashed in on recent gains, though losses were cushioned by outages in Nigeria that have slashed output there to the lowest in 22 years.
The dollar hit a two-week high against a basket of currencies, lifted by expectations the U.S. Federal Reserve will raise rates again before any other major central bank.
The strong U.S. currency weighed on greenback-denominated commodities such as oil futures, making fuel imports more expensive for countries using other currencies and potentially hitting demand.
“I would attribute these losses to profit taking after three days of strong gains before the long weekend,” said Carsten Fritsch, commodities analyst at Commerzbank. Many European countries, including Germany and France, will observe a public holiday on Monday.
Global benchmark Brent crude futures LCOc1 were down 45 cents at $47.63 a barrel at 1112 GMT.
U.S. West Texas Intermediate crude futures CLc1 traded at $46.09 a barrel, down 61 cents day on day.
Brent futures briefly turned positive in early European trading after traders said Exxon Mobil had declared force majeure on Nigerian Qua Iboe crude exports following mechanical problems with a pipeline.
The production glitch came after a number of other outages that have reduced Nigeria’s crude output close to a 22-year low.