The price of oil dropped on Thursday’s opening bell after an unexpected decline in stockpiles. Brent was away from a 26-month high and U.S. crude gave up some of its gains from the previous trade.
According to the U.S. Energy Department, crude oil in the United States dropped more than 1.8 million barrels in the course of the previous week. The released data came in as a surprise because they expected crude to rise by 3.4 million barrel instead of declining.
International benchmark for oil prices Brent crude fell by 0.3 percent or 17 cents to trade at $57.73 per barrel. U.S. West Texas Intermediate (WTI) crude prices lost about 2 cents closing at $52.12 per barrel.
According to some analyst, U.S. crude became more competitive in the market as its exports touched a record of 1.5 million barrels per day (bpd).
The U.S. dollar gained strength vs. its major peers on Thursday and is currently close to a one-month high. The greenback was supported by expectations that the Trump administration would be able to successfully promote its promised tax reforms.
Last Wednesday, U.S. President Donald Trump unveiled his tax plan which offers to cut taxes for business and private citizens to 20 percent.
The dollar index, stood tall at 93.414. It rose approximately 1.3 percent this week.