Crude Oil Price Hit a Three-Week Low Amid Robust Greenback

The price of crude oil plummeted to its lowest level in around three weeks on Thursday due to a firmer USD and Fed rate hike expectations.

At the time of writing, the US West Texas Intermediate plunged by 1.96% to $77.69 per barrel. Likewise, the Brent contract declined by 1.82% to $81.61 a barrel.

Both benchmarks followed a 2% fall in the previous session and were at their lowest reading since late March. Also, most of their gains were slashed since the surprise crude oil cut announced by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on April 2.

So far this week, the US dollar index inched up around 0.30% and is set for its strongest week since February.

According to analysts, the greenback’s robustness makes crude oil more expensive for holders of other currencies.

The Federal Reserve stated that the country’s economic activity was slightly altered in the previous weeks.

Besides, it signaled the end of its most aggressive rate-hiking pace in 40 years, with traders betting one last quarter percentage point increase.

Elsewhere, the Bank of England is anticipated to raise its cash rate to tame the United Kingdom’s persistent double-digit inflation.

US Crude Oil Stockpiles Declined

Crude oil inventories in the United States plunged by 4.60 million barrels as refinery runs and exports increased.

On the other hand, the country’s gasoline inventories unexpectedly rose on disappointing demand, US Energy Information Administration (IEA) said.

The decline in crude oil stockpile was far steeper than experts’ and the American Petroleum Institute’s (API) forecasts.

On the supply side, crude oil loading from the Russian western ports last month rose to the highest since 2019. It is despite local officials’ pledge to slash their production, trading, and shipping.

Meanwhile, Pakistan created its first order for discounted Russian fuel under a new treat, covering 100,000 barrels per day.