Crude Oil Drops On Ralling Of Dollar Index

brent oil prices

Crude Oil : Brent Oil fell below $85 per barrel While WTI crude oil fell toward $77 per barrel on Wednesday, sliding back to the lowest levels since January, as a rallying dollar and higher US crude inventories outweighed concerns that OPEC+ may reduce output further.

The dollar index surged to a fresh 20-year high after a White House official ruled out a currency agreement among major economies to weaken the greenback.

Industry data also showed the US crude stockpiles expanded by more than 4 million barrels last week, ahead of official data later on Wednesday. Oil prices faced heavy selling pressure since June and are on track to post their first quarterly decline in more than two years as aggressive monetary tightening aimed at curbing inflation escalated the risk of a global recession that could hurt energy demand.

Meanwhile, sharp falls in oil prices stoked speculations that OPEC+ may cut output to stem the slide, with Moscow reportedly lobbying the group to slash production by about 1 million barrels a day.