Oil drops amid dollar strength; demand picture still bullish | Reuters
Oil prices fell for a second straight session on Friday as the U.S. dollar soared on the prospect of interest rate hikes in the United States, but they were on track to finish the week little changed and only slightly off multi-year highs.
Brent crude futures were down 45 cents, or 0.6%, at $72.63 a barrel as of 0700 GMT, extending a 1.8% decline on Thursday. The contract is on track to be flat for the week.
U.S. West Texas Intermediate (WTI) crude futures were down 33 cents, or 0.5%, at $70.71 a barrel, after retreating 1.5% on Thursday. WTI is heading for a slight decline, which would be the first drop in four weeks.
On Wednesday, Brent settled at its highest price since April 2019 while WTI settled at its highest since October 2018.
The dollar has rocketed in the two sessions since the U.S. Federal Reserve projected possible rate hikes in 2023, earlier than market watchers previously expected. A rising dollar makes oil more expensive in other currencies, curbing demand.
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