Oil prices retreat from multi-year highs on stronger dollar, profit-taking-Xinhua

Oil prices retreat from multi-year highs on stronger dollar, profit-taking

Source: Xinhua| 2022-01-28 06:52:15|Editor:

NEW YORK, Jan. 27 (Xinhua) -- Oil prices dropped from their multi-year highs on Thursday due to substantial appreciation of the U.S. dollar and investors' profit-taking.

The West Texas Intermediate (WTI) for March delivery fell 0.74 U.S. dollar, or 0.85 percent, to settle at 86.61 dollars a barrel on the New York Mercantile Exchange. Brent crude for March delivery lost 0.62 dollar, or 0.69 percent, to close at 89.34 dollars a barrel on the London ICE Futures Exchange.

U.S. dollar index jumped over 0.7 percent on Thursday due to expectations on the Federal Reserve's hawkish turn.

Investors also booked profits as oil prices hover around the highest level in the last eight years.

"Additional gains from road fuels beyond a demand normalisation will be increasingly difficult to achieve. With petrochemical demand growth also unlikely to proceed at its recent pace, additional demand growth from here onwards will increasingly rely on a continued upswing in air travel demand," said a research note by JBC Energy on Wednesday.

JBC expected that the annual average of global oil demand for 2022 would stand at 100.5 million barrels per day, some 500,000 barrels per day above its 2019 levels.