After the US Federal Reserve identified that it may raise interest rates faster than expected, the U.S. Crude oil prices fell on Thursday as the dollar strengthened, but losses 8849 | U.S. crude oil cargo.
After reaching a high from April 2019 in the previous session, Brent crude oil futures fell 42 cents, or 0.6%, to $ 73.97 a barrel at 0649 GMT.
U.S. Crude oil futures were down 42 cents, or 0.6%, at $ 71.73 a barrel, the highest level since October 2018.
“Energy markets have been somewhat blinded by a strong summer trip and Iran’s nuclear deal negotiations,” said Edward Moya, Onda’s senior market analyst.
“The central bank was expected to suspend the meeting, but they sent a clear message that they were ready to talk about tapping, which means the dollar is ripe for a comeback, which should be a helmet for all commodities.”
In the 15 months since the Federal Reserve signaled, the US dollar has boasted of strong single-day gains, which could push interest rates much faster than expected.
A solid green pack makes oil more expensive in dollars than other currencies, which can be commensurate with demand.
However, data from the Energy Information Administration last week showed that the world’s largest consumer the U.S. As crude oil reserves showed a sharp decline, refineries increased their activity to a maximum from January 2020, indicating continued demand improvement.
China, the world’s second-largest oil consumer, raised its refinery production price by 4.4% in May, the highest since a year earlier.
“This downturn in oil prices should be temporary because the fundamentals in both supply and demand can be offset by a dollar again,” Moya said.