Oil prices fell on Thursday, impressed by the strengthening of the US dollar after the US Federal Reserve (Fed) signaled the possibility of a faster -than -expected interest rate hike.
WTI US crude futures fell back below the $ 72 a barrel price level, trading around $ 71.76 a barrel after touching the highest level since October 2018.
Meanwhile, Brent crude oil traded down at $ 73.98 a barrel, having reached its highest level since April 2019 on Wednesday.
An optimistic statement from Fed Chairman Jerome Powell on the expectation of an interest rate hike by the end of 2023, has prompted a surge in the greenback dollar and caused oil prices to be expensive for holders of other major currencies.
However, the recorded decline in oil prices was limited, as it was also supported by the outlook for growing demand following the Fed's picture of a faster -than -expected economic recovery.
Moreover, data readings from the U.S. Energy Information Administration (EIA) that reported a significant drop in U.S. oil inventories have also supported prices from falling lower.
U.S. crude oil supplies reportedly declined by 7.35 million barrels last week, marking the fourth consecutive and largest decline since the last week of April.
