Oil prices retreated on Wednesday as a stronger U.S. dollar weighed on the commodity, following the Federal Reserve’s signal of fewer rate cuts in 2024. Brent crude fell by 1.5% to $77.62 per barrel, while WTI dropped 1.8% to $73.45, marking their lowest levels in two weeks. The Fed’s outlook, emphasizing elevated interest rates to combat inflation, has bolstered the dollar, making oil more expensive for international buyers.
The dollar’s strength coincided with growing concerns over waning demand for crude in key markets. Analysts pointed to a potential slowdown in global economic growth, exacerbated by restrictive monetary policies. With oil priced in dollars, further appreciation of the greenback could continue to pressure prices, creating headwinds for energy markets.
