Oil price declines on US data boosting US dollar

Oil price declines as traders take profit. The US dollar continues rallying after US macroeconomic data reinforces an optimistic view of the economy. Oil, however, is supported by EIA inventory data, showing a steep drawdown in the prior week, reflecting rising demand.

The comments by the Saudi Oil Minister warning short-sellers and the start of the US driving season are bullish factors. Oil price rolls over and performs negatively on Thursday due to continued unease around the debt ceiling and traders booking profits from the recent rally.

Crude is mainly priced in the US Dollar which also is getting stronger, putting pressure on the crude oil price. The Dollar Index (DXY) has broken above the 104.00 psychological level and is on the rise following the release of positive data.

At the time of writing, WTI Oil is trading in the lower $72s, specifically at $72.43 per barrel and Brent Crude Oil in the lower $76s. A bullish right-angled triangle has completed on the 4-hour chart, posing a challenge to the overall bear trend.

A lack of traction in US debt-ceiling talks weighs on the price of crude oil as it raises the specter of the US defaulting and triggering a global recession.