Oil prices give up three-week highs as dollar powers up

1 week ago

Oil prices declined in European trade on Thursday for the first time in four days off three-week highs on profit-taking while the dollar powers up against major rivals. 


The decline comes following Russian statements that hurt chances of more production cuts by OPEC+ next week. 


Such developments overshadowed recent data that showed a collapse in US crude stocks last week in a strong sign of demand.


Global Oil Prices


US crude fell 1.9% to $72.78 a barrel, while Brent fell 1.7% to $76.82 a barrel, with a session-high at $78.34. 


US crude is up 0.6% on Wednesday on track for the third profit in a row, hitting three-week highs at $74.69 a barrel, while Brent added 0.8% to $78.46 a barrel, the highest since May 2. 


Such gains were registered after Saudi Arabia's energy minister warned that short sellers "should be careful of pain".


traders took the statement as a signal OPEC+ might impose another production cut at the next June meeting.


The Dollar


The dollar index rose 0.3% on Thursday for the fourth straight session, hitting two-month highs at 104.18 against a basket of major rivals. 


A stronger dollar weighs ion dollar-denominated commodities and makes them costlier to holders of other currencies.


Dollar is riding the wave of strong US data including GDP growth data, in addition to bullish remarks by Fed officials, which bolstered the case for a 0.25% rate hike in June. 


Russian Remarks


Russian Vice Prime Minister Alexander Novak dismissed prospects of fresh OPEC+ production cuts next week, and expecting no such new steps by the oil cartel. 


US Stocks


The Energy Information Administration reported a steeo drop of 12.5 million barrels in US crude stocks last week, while analysts expected an increase of 1.9 million barrels.


Gasoline stocks are now down 2.1 million barrels to 216.3 million barrels, while distillate stocks are down 600 thousand barrels to 105.7 million barrels.


US Production 


The EIA also reported an increase of 100 thousand bpd in US output last week to a total of 12.3 million bpd, cementing the US's status as the world's stop oil producer. 

Commodities News

Gold News


Gold declines under pressure from the dollar
1 hour ago
Gold prices declined in European trade for the first session in three under pressure from the ...
Gold News


Gold extends gains but still trades below $2,000
15 hours ago
Gold prices rose on Tuesday even as the dollar muscled up against major rivals, but the precious ...
Copper News


Copper loses momentum amid economic concerns and technical signals
18 hours ago
Copper prices stalled on Tuesday on continuous concerns about economic growth following weak US and ...

Commodities Technical Analysis

Brent oil Analysis


Midday update for Brent oil 07-06-2023
23 minutes ago
Brent oil price trades positively to approach the key resistance 76.80, and as long as the price is ...
Oil Analysis


Midday update for Crude oil 07-06-2023
23 minutes ago
Crude oil price shows bullish bias to attempt to breach 71.55 level, which urges caution from the ...
Silver Analysis


Midday update for Silver 07-06-2023
23 minutes ago
Silver price settles below the intraday bullish channel’s support line, reinforcing the ...