Oil prices dipped 2% on a stronger US dollar
Investors are on high alert as the FED is expected to raise key interest rates by another 0.25% in May, sending the greenback surging against the basket of currencies.
International benchmarks for crude sunk 2% to a two-week low on Wednesday, 19 April 2023 as the appreciated US dollar overshadowed the sharp decline in the US commercial crude inventories.
Investors are on high alert as the FED is expected to raise key interest rates by another 0.25% in May, sending the greenback surging against the basket of currencies. A stronger US dollar makes commodities traded in this currency less appealing to overseas investors. Meanwhile, the persistently high inflation in Europe and the imbalanced economic recovery in China also weighed on the market.
Brent futures crude for June delivery dropped $1.65 or 2%, to settle at $83.12/barrel. West Texas Intermediate on the other hand fell $1.70 or 2.1% to close at $79.16/barrel for May delivery.