Oil prices rose on Thursday, and resumed their rally after taking a pause yesterday due to profit-taking from multi-year highs, following a large drop in the US crude inventories.

US crude rose 0.8% to $72.22 a barrel, after opening at $71.67, and hit a low at $71.36, and Brent crude rose 0.9% to $74.44 a barrel, after opening at $73.78, and hit a low at $73.58.

The US crude lost 1.1% yesterday, on profit taking from a 3-yar high at $72.96, and Brent crude fell 0.5% after hitting the highest since April 2019 at $74.94.

Oil prices fell on Wednesday due to profit-taking and the US dollar's broad rally against a basket of currencies, after the Federal Reserve released positive projections.

The Energy Information Administration reported yesterday that the US crude inventories fell 7.4 million barrels during the past week, while analysts forecasts a drop by 2.1 million barrels.

The total commercial inventories fell to the lowest level since the week ending on February 19 at 466.6 million barrels, in a positive sign of the US demand levels.

While the US output rose by 200K barrels per day last week, with the total at the highest level since May 2020 at 11.2 million barrels per day.

Gold prices fell on Thursday, deepening losses losses for the fifth day, falling below the $1,800 barrier for the first time in 6 weeks, as the US dollar rallied against its peers after the US Federal Reserve hinted earlier policy tightening as inflation and growth improve. 

Gold prices fell 0.3% to the lowest since May 6 at $1,795.12 an ounce, after opening at $1,811.59, and a high at $1,825.22.

Gold lost 2.6% yesterday, and posted its fourth straight daily loss, and the largest since January 8, following the Federal Reserve's meeting.

The dollar index rose 0.4% on Thursday for the third straight session, marking a 2-month high at 91.75 as the greenback extends lead against a majority of rivals. 

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.

Gold stocks at the SPDR ETF rose by 1.17 metric tonnes yesterday, with the total at the highest level since June 1st at 1,045.78 metric tonnes.

Euro fell in European trade against dollar for another session to two-month lows as haven demand increases on the greenback, amid expectations of earlier policy tightening in the US as inflation and growth improve. 

EUR/USD fell 0.5% to 1.1936, the lowest since April 13, after closing down 1.1% yesterday, the largest loss since March 2020 following the Federal Reserve's meeting. 

The dollar index rose 0.4% on Thursday for the third straight session, marking two-month highs at 91.75 as the greenback extends lead against a majority of rivals. 

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.

US stock indices fell on Wednesday, deepening losses following the US Federal Reserve’s projections to raise interest rates twice in 2023.

The US Federal Reserve decided to hold the interest rate between zero and 0.25% unchanged, and addressed the recent rise in inflation according to the recent economic data, as the Fed officials see that the rise in consumer prices is temporary.

The FOMC stated that it expects 2 interest rate hikes in 2023, and raised its forecast for US GDP growth this year to 7% from 6.5% in March.

Whilst the central bank kept its forecast for the US economy growth in 2022 at 3.3%, but raised its forecast for 2023 to 2.4% from 2.2%.

The Fed expects the personal consumption expenditures index (which the Fed uses to measure inflation) to rise by 3.4% in 2021 from 2.4%, and raised its forecast for 2022 and 2023 to 2.1% and 2.2% respectively.

The central bank projected that the unemployment rate will fall to 4.5% this year, and lowered its forecasts for it to 3.8% in 2022 from 3.9%.

Data showed that the US building permits index fell 1% in May to 1.68 million permits.

To the oil market, WTI crude July futures rose less than 0.1%, or 3 cents, and closed at $72.15 a barrel, after hitting a high of $72.9 and a low of $71.8.

Brent August futures rose 0.5% or 40 cents, and closed at $74.39 a barrel, after hitting a high of $74.9 and a low of $73.9.

As for stocks, Dow Jones fell 0.8% or 265 points, and closed at 34,033, with a day high of 34,333, and a low of 33,917.

Nasdaq fell 0.2% or 33 points to 14,039, with a high of 14,129 and a low of 13,990.

S&P 500 fell 0.5% or 22 points to 4,223, after hitting a high of 4,251 and a low of 4,202.