Oil prices were steady to a few cents lower on Thursday, as the market grappled with a stronger U.S. dollar along with concern over increasing U.S. inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.
Brent crude futures were down 8 cents to $82.56 a barrel by 1:42 p.m. EDT (1842 GMT) after falling earlier to $81.66. U.S. West Texas Intermediate (WTI) futures were down 2 cents to $81.32 after hitting a session low of $80.20.
On Wednesday, U.S. data showed consumer price inflation rose in October at an annual rate of by 6.2%, the fastest rate in 30 years, driven largely by steeper energy prices. Expectations that the data would prompt U.S. rate hikes pushed the dollar higher and sent Brent and WTI crude down by 2.5% and 3.3%, respectively
“Today’s oil trade is indicating that U.S. dollar trends will likely be prioritized over risk appetite going forward,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois
