Oil drops over 2% on dollar strength

Oil prices fell on Thursday, as the US dollar rose against most major currencies.

The Energy Information Administration reported yesterday that the US crude inventories fell 7.4 million barrels to 466.7 million barrels during the past week, while analysts forecasts a drop by 4.2 million barrels.

The US Federal Reserve decided to hold the interest rate between zero and 0.25% unchanged, and stated that it expects 2 interest rate hikes in 2023, and raised its forecast for US GDP growth this year to 7%.

The dollar index rose against a basket of major currencies by 0.7% to 91.8 points as of 16:09 GMT, after hitting a high of 91.8 points and a low of 91.3 points.

As of 17:30 GMT, WTI crude July futures fell 2.3% to $70.4 a barrel, after hitting a high of $72.3 and a low of $70.9.

Brent August futures fell 2.4% to $72.6 a barrel, after hitting a high of $74.5 and a low of $72.4.