Crude Down As Dollar Strengthens

Oil prices are down around 0.5% during APAC trading after Wednesday’s 2% rally driven by the large US crude inventory drawdown. Oil rose earlier in the session but turned down once the dollar strengthened. It is now flat to slightly down on the week. The USD index is 0.1% higher.

• WTI is down 0.5% to $69.21/bbl, close to the intraday low of $69.12. It appears to have found support around $69. Earlier it reached a high of $69.58. Brent is 0.6% lower at $73.82, close to the low of $73.75 after a high of $74.23. They continue to trade well below resistance levels.
• US EIA crude stocks fell 9.6mn barrels, the largest drop in 2 months, as exports soared. The move may be a signal that the market is tightening as both the IEA and OPEC+ are forecasting. There were small rises in gasoline and distillate inventories. Gasoline and jet fuel demand should increase with the upcoming July 4 holiday weekend.
• Later today Fed Chair Powell takes part in a discussion at the Bank of Spain and Bostic speaks on the US economic outlook. On the data front revised Q1 US GDP, jobless claims, pending home sales and euro area economic sentiment print.