Oil closed down this Thursday, 21st, extending the losses into the second session, as the dollar appreciates with reactions to the signal about the direction of interest rates in the United States. The performance comes after the WTI and Brent contracts renewed their intraday highs since November 2023 on Tuesday.
On the New York Mercantile Exchange (Nymex), WTI oil for May closed down 0.25% (US$0.20), at US$81.07 per barrel, while Brent for May fell 0.20% ( US$ 0.17), at US$ 85.78 per barrel, on the Intercontinental Exchange (ICE).
The dollar was quoted high this Thursday. This strengthening makes the commodity, traded based on the American currency, more expensive for holders of other currencies. The day before, the dollar fell under the impact of statements by Fed President Jerome Powell and the maintenance of the projection of three interest cuts by the American Central Bank this year.
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Oil retreats, but maintains an upward trend for the short term, ActivTrades market analyst Alexander Londoño wrote in a note. “The $80.00 zone could act as support for WTI oil,” Londoño said. Brent could find support at $84 per barrel, he added. This level was considered as resistance, but now it may have changed to support function.
* With information from Dow Jones Newswires
Tags: Oil prolongs fall maximum correction months face rising dollar
