- Crude prices fall for the sixth day in a row.
- The worsening outlook for demand and the strengthening dollar drag the WTI lower.
- The fall in crude inventories in the United States did not trigger a rebound.
Oil prices fell for the fifth day in a row on Wednesday and a barrel of West Texas Intermediate (WTI) lost more than 7% during that period. On Thursday, WTI extended its slide to its lowest level in nearly three months at $ 62.81. After a rebound, the price returned to $ 63.00, where it is trading down 2.50%.
Oil suffers losses due to risk aversion
The worsening outlook for energy demand amid rising cases of the delta variant of the coronavirus globally continues to weigh on oil prices. In addition, the risk-averse market environment after the FOMC minutes, reflected by sharp falls in global equity indices, is making it difficult for oil to find demand.
What’s more, the strength of the dollar is also putting additional weight on WTI’s shoulders. After the Fed’s minutes, which reaffirmed the position of several members to start reducing asset purchases before the end of the year, the US dollar index (DXY) reached a new high for this year at 93.50.
Meanwhile, the weekly report from the US Energy Information Administration revealed that commercial crude inventories in the United States decreased by 3.2 million barrels in the week ending August 13. Although this was higher than expected in oil inventories, the WTI was not favored.
Technical levels
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