Oil Drops as Growing Stockpiles, Stronger Dollar Restrain Prices

Oil slid as the dollar strengthened while the expectation of another build in US crude inventories kept a lid on prices.

(Bloomberg) — Oil slid as the dollar strengthened while the expectation of another build in US crude inventories kept a lid on prices.

The industry-funded American Petroleum Institute reported that US commercial crude inventories rose by 10.5 million barrels last week, Traders await the official data from the US government later in the session. Meanwhile, the dollar rose, which makes commodities priced in the currency less attractive.

Crude is stuck in a $10 band so far in 2023, caught between the risk of a recession hitting world governments and continued optimism surrounding Chinese demand. Smaller, macro-related fluctuations have moved prices up and down, but prices remain in the narrow band as the market remains fairly balanced until either a slow down or China’s reopening comes into full force.

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