Crude oil Prices Slumps After Fed Hike, US Crude Stock Build

brent oil prices

COMMODITY(B-Trams):After three sessions of gains slumping , crude oil prices fell on Thursday as U.S. crude stocks rose more than expected and Federal Reserve Chair Jerome Powell emphasized the credit risks facing the world’s largest economy from the banking sector.

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As Today Brent crude futures were down 66 cents, or 0.9%, to $76.03 per barrel, while U.S. West Texas Intermediate crude was down 74 cents, or 1.0%, to $70.16 per barrel, according to Reuters.

After the dollar fell to a six-week low, both crude prices benchmarks closed on Wednesday at their highest close since March 14.

Yeap Jun Rong, a market strategist at IG, stated, “Economic risks were being flagged out in the Fed meeting, while higher-than-expected U.S. crude stocks of oil  also dampened some optimism about demand outlook.”

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Yeap added that, despite the dip-buying that occurred at the beginning of the week, there is still some room for upside in oil prices because of the weakness in the dollar.