WASHINGTON (dpa-AFX) - Crude oil prices drifted lower on Thursday amid concerns about the outlook for demand and the recent data showing an increase in U.S. crude inventories last week.
A strong dollar weighed as well on oil prices.
The dollar index climbed to 103.62, gaining nearly 0.75%, amid optimism about a U.S. debt ceiling deal, and data showing a drop in U.S. jobless claims last week.
West Texas Intermediate crude oil futures for June ended lower by $0.97 or about 1.3% at $71.86 a barrel.
Brent crude futures were down $1.12 or 1.4% at $75.84 a barrel a little while ago.
U.S. oil inventories jumped unexpectedly last week but that was due to another release from the Strategic Petroleum Reserve, EIA data showed on Wednesday.
Crude inventories rose by 5 million barrels in the week to May 12 to 467.6 million barrels, compared with analysts' expectations for a 900,000-barrel drop.
At the same time, gasoline inventories dropped as demand surged to its highest since 2021.
Edward Moya, Senior Market Analyst at OANDA says crude prices are sliding as the dollar rallies.' Good news for the economy is now bad news for the crude demand outlook as economic resilience will force the Fed to kill the economy,' he says, and adds: 'Oil is becoming an easy trade, as it will track the dollar and not so much anything else. If China's economic momentum returns that should help stop the dollar strength we are currently seeing.'
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