Oil falls as dollar firms; demand outlook remains bullish
Oil prices dipped anew on Friday as the dollar steadied on the prospect of interest rate hikes in the United States. However, prices were on track to end slightly changed and only nearly off multi-year highs.
Brent crude futures dropped 45 cents, or 0.6%, at $72.63 a barrel to extend 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 dropped 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 fall in a month.
Brent settled at its highest price since April 2019 on Wednesday while WTI settled at its highest since October 2018.
The dollar has soared in the two sessions since the U.S. Federal Reserve projected possible rate hikes in 2023, sooner than market watchers previously anticipated. A rising dollar makes oil more expensive in other currencies, curbing demand.