Crude prices dropped nearly 2 percent on Monday as the U.S. dollar extended its gains against a basket of major currencies.
Light, sweet crude for July delivery dropped 1.42 dollars, or 2percent, to settle at 70.62 dollars a barrel on the New York Mercantile Exchange.
The contract price fell below 70 dollars a barrel during the session, as the dollar get support from Russian official’s remarks.
Russian Finance Minister Alexei Kudrin said over the weekend the dollar was in good shape at the moment and its status as the global reserve currency was unlikely to change in the near future.
Oil and dollar often trade oppositely because crude is priced in dollars around the world. A rising dollar makes oil more expensive for holders of other currencies and limits the demand of buying oil to hedge against inflation.
In London, Brent crude for July delivery, which expires on Monday, fell 1.60 dollars to 69.32 dollars a barrel on the ICE Futures exchange.