Oil prices inch lower from 4-mth highs as strong dollar weighs
Investing.com-- Oil prices fell slightly from four-month highs in Asian trade on Friday, seeing some profit-taking and pressure from the dollar as hotter-than-expected U.S. inflation data pushed up fears of a more hawkish Federal Reserve.
Still, crude prices were set to gain more than 4% this week, with Brent futures holding above the $85 a barrel level as signs of improving U.S. demand and tightening fuel markets spurred strong gains through the week.
Brent oil futures expiring in May fell 0.2% to $85.26 a barrel, while West Texas Intermediate crude futures fell 0.2% to $80.58 a barrel by 21:42 ET (01:42 GMT).
Prices were pressured by a stronger dollar, which rose sharply on Thursday after producer price index inflation data read stronger than expected for February. The reading, which came just days before a Fed meeting, ramped up fears that the central bank will keep interest rates higher for longer in 2024.
Brent and WTI contracts were set to add nearly 4% each this week after a bigger-than-expected draw in U.S. inventories pointed to improving demand in the world’s largest fuel consumer.
The White House was also seen buying over 3 million barrels of oil to replenish the Strategic Petroleum Reserve.
In addition to the smaller U.S. inventories, debilitating Ukrainian attacks on a key Russian fuel refinery threatened to potentially disrupt fuel supplies in parts of Asia and Europe, presenting a tighter supply outlook for oil markets.
This, coupled with continued geopolitical disruptions in the Middle East, particularly the Israel-Hamas war and the Red Sea Houthi strikes, pointed to tighter oil markets in the coming months.
Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy
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