Crude oil futures closed lower on Friday (June 10), with markets under pressure as the dollar strengthened following higher-than-expected U.S. inflation data.
- WTI crude futures were down 84 cents, or 0.7%, at $120.67 a barrel. but rose 1.5% this week.
- BRENT crude futures were down $1.06, or 0.9%, at $122.01 a barrel. but rose 1.9% this week.
Oil prices are under pressure as the dollar surged following the announcement that U.S. inflation rose more than expected in May.
The dollar index rose 0.88% to 104.1440 against the six major currencies in a basket of currencies on Friday, after gaining 0.68% on Thursday.
A strong dollar makes crude oil contracts more expensive for investors holding other currencies.
Following the publication of the consumer price index (CPI) in the U.S., which was higher than expected, the dollar is strengthening. This could prompt the U.S. Federal Reserve (Fed) to accelerate interest rate hikes in order to curb inflation.
The Labor Department announced Friday (June 10) that the CPI rose 8.6% in May from a year earlier. This is the highest level in more than 40 years, or since 1981.
Meanwhile, the core CPI excluding food and energy rose 6.0% year on year in May. And on a monthly basis, the core CPI rose by 0.6% in May.
The Spot Market is Closed
Saturday, June 11, 2022