Oil deepens losses after resolving OPEC+ impasse

Oil prices fell on Thursday, as the US dollar rose against its counterparts, amid expectations of a near hike in Emirati production after its dispute with Saudi Arabia within the OPEC Plus alliance was resolved.

The Energy Information Administration reported yesterday that the US crude inventories fell 6.9 million barrels to 445.5 million barrels during the past week, while analysts forecasts a drop by 6.2 million barrels.

Reuters quoted informed sources that Saudi Arabia and the UAE were able to resolve their dispute over OPEC+ production policy, and set a higher baseline output level for the UAE at 3.65 million bpd after the end of the current cut agreement in April 2022.

The dollar index rose against a basket of major currencies by 0.2% to 92.6 points as of 17:38 GMT, after hitting a high of 92.6 points and a low of 92.2 points.

WTI crude August futures fell 1.1% to $72.3 a barrel, after hitting a high of $72.9 and a low of $71.5.

Brent May futures fell 0.8% to $74.1a barrel, after hitting a high of $74.5 and a low of $73.1.