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Crude oil prices dip on Tuesday due to stronger US dollar

Crude oil prices have fallen following an anticipated increase of US shale output and stronger dollar.

Front-month Brent crude prices dipped 21 cents at $65.31 per barrel, and US crude declined 13 cents at $59.59 a barrel, Reuters reported.

The dollar prices reached one month high, making oil more expensive for buyers in other currencies.

"We believe that should West Texas Intermediate prices remain near $60 a barrel, US producers will ramp-up activity, given improved returns, with costs down by at least 20%."

Dollar gained strength after US Federal Reserve chair Janet Yellen hinted as a raise interest rates, which will be first since 2006.

Morgan Stanley said that falls in oil prices due to a stronger dollar may be a new trend.

Later this year, a stronger underlying inflation in the US strengthened the Federal Reserve's case for a rise in interest rates due to the dollar value increasing compared with other major currencies.

Goldman Sachs told the news agency: "We believe that should West Texas Intermediate prices remain near $60 a barrel, US producers will ramp-up activity, given improved returns, with costs down by at least 20%."

As West Texas Intermediate (WTI) prices are at their high, the recent oil rally according to Timera Energy has lost its momentum.

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