Oil suffers losses amid stronger US dollar, rising inventories

The price of oil is trading with significant losses, while the US dollar managed to consolidate its performance on the back of the Federal Reserve’s statements adopting tightening monetary policy, and the uncertainty about the outcome of the US debt ceiling negotiations.

Latest data revealed a larger-than-expected rise in crude inventories, which are of significant weight, but were balanced and reveal, at the same time, the potential for rising global demand.

The price of oil is moving in a downward trend from a technical point of view – but there are increasing signs of the possibility of a recovery in the near term, after the price of oil incurred losses recorded today, Thursday, as it is trading down by about (-1.22%) at the time of writing this report, at the level of 71.74. Dollars per barrel, after the US dollar – which is mainly used in oil pricing and trading – gained and data released by the US Energy Information Administration revealed an expected rise in inventories.

Meanwhile, Brent crude is trading near $75.69 at the time of writing and oil found some support after data from the Joint Organizations Data Initiative (JODI) reported, on Thursday, a rise in global oil demand in March.