WTI Oil sell-off persisted on Thursday, posting 3% losses in two trading days.
Oil prices broke below the pivotal $83.34 level, heading to $80.63 next.
The US Dollar Index slides below 106.00 after a slew of central bankers are pushing against a stronger Greenback.
Oil prices retreat further on Thursday, extending the decline triggered on Wednesday after a string of headlines from the US President Joe Biden administration over tariffs and sanctions. On the tariff front, Biden called for higher fees on Chinese steel and aluminium. On the sanctions front, the US is set to reimpose sanctions on Venezuelan Oil and Gas while Washington considers adding sanctions on Iran’s Oil exports.
The US Dollar, meanwhile, is facing pressure from several central banks across the world that are seeing their currencies depreciate against the US Dollar. The strength of the US Dollar is an issue for central banks as it trickles back inflation. In Asia, even a coordinated intervention could take place should the US Dollar Index (DXY) rally any further with Japan and South Korea set to jointly intervene in markets.
Crude Oil (WTI) trades at $81.80 and Brent Crude at $86.44 at the time of writing.
