- WTI suffers heavy losses for the second day in a row on Thursday.
- The broad-based USD strength appears to be dragging crude prices lower.
- The lack of progress in Iran’s nuclear talks weighs even more on WTI.
After reaching its highest level since October 2018 at $ 72.96 on Wednesday, the West Texas Intermediate (WTI) barrel took a sharp turn and snapped a four-day winning streak, losing more than 1%.
Although WTI remained relatively quiet around $ 72 during European trading hours, it came under renewed downward pressure and fell to its lowest level in nearly a week at $ 69.75 before rebounding modestly. At time of writing, WTI is trading at 1.72% on the day at $ 70.45
The DXY rally remains intact
The overall strength of the USD following the sea change seen in the FOMC Forecast Summary appears to be the main theme of the market in the second half of the week. Currently, the US Dollar Index (DXY) is trading at its highest level in more than two months at 91.90, rising 0.55% on the day.
Investors, meanwhile, remain wary of the prospect of Iran and the United States reaching an agreement on nuclear talks that could lead to the lifting of sanctions on oil exports ahead of the upcoming elections in Iran on Friday.