Oil prices are extending this week's losses - BBH

Research Team at BBH, notes that the oil prices are extending this week's losses as the brent and WTI are off about 1.4% to their lowest level in three weeks. 

Key Quotes

“There are two drivers.  API showed a 4.8 mln barrel build in US crude inventories.  Today's DOE estimate is looked upon for confirmation.  In addition, Russia seems to be balking at participating with OPEC's effort to cut output. 

The decline in oil may also have more impact in the foreign exchange market, outside of being an additional weight on the Canadian dollar, Norwegian krone, Mexican peso, Malaysian ringgit, and Russian ruble.  If the decline in oil prices drags yields lower, especially in US Treasuries, it could extend the US dollar's correction.  Although the FOMC meets next week, few if any expect the Fed to move.  Those who do expect a hike see it in December.  That is a long time in the foreign exchange market.”