Oil prices fell by more than 1% on Wednesday, pressured by a strengthening dollar and an unexpected increase in U.S. crude inventories. Market sentiment was also affected by growing speculation that the upcoming U.S. presidential election might lean in favor of Republican candidate Donald Trump.
Brent crude futures saw a decline of 90 cents, or 1.2%, settling at $74.63 per barrel, while U.S. West Texas Intermediate crude dropped 82 cents, or 1.1%, to $71.17 per barrel. This pullback in prices comes as the dollar index weakened to a three-week low against a basket of other currencies.
The drop in oil prices coincides with the dollar’s strength, as a stronger U.S. currency makes oil more expensive for holders of other currencies, further contributing to the price decline.
