Oil Plunges as USD Surges Following Fed’s Hawkish Tone

Oil prices declined on Thursday, as the U.S. Dollar (USD) surged across the board after the Federal Reserve pointed to plans to raise interest rates sooner the previously expected, in a surprise change in tone.

However, the drop in crude prices was relatively limited compared with other commodities amid expectations for demand recovery during the second half of the year.

Brent crude futures for August delivery lost $1.31, or 1.76%, to close at the level of $73.08 a barrel, registering its first loss following five consecutive daily rises.

Meanwhile, the West Texas Intermediate (WTI) futures for July delivery finished lower by $1.11, or 1.54%, at $71.04 per barrel, after rising for two consecutive sessions.

This marked the biggest decline for the global and U.S. benchmark crude most active contracts since May 20.