Oil prices drop in early trade

20 Jul 2023 , 10:49 AM

Early Asian trading on Thursday saw oil prices decline, extending losses from the previous session due to a strengthening dollar and profit-taking after U.S. crude oil stocks declined less than anticipated.

Brent futures were down 14 cents, or 0.2%, to $79.32 per barrel, while WTI crude for the United States was down 15 cents to $75.20 per barrel.

Prices were impacted by the U.S. dollar index’s strength. The UK’s inflation dropped more than anticipated in June, slowing to its lowest rate in more than a year at 7.9%, which helped morale on Wednesday.

Crude becomes more expensive for investors using other currencies when the dollar is stronger.

The fact that U.S. oil stocks decreased by 708,000 barrels last week to reach 457.4 million barrels, as opposed to the 2.4 million barrel decline that analysts had predicted in a Reuters poll, weighed on morale as well. 

The market is awaiting China’s actions to spur growth on the demand side after the country’s chief economic planner promised on Tuesday to implement measures to ‘restore and expand’ consumption in the second-largest economy in the world.

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