2021.06.1710:12:00UTC+00Oil Prices Little Changed As Dollar Firms Up

Oil prices were little changed on Thursday as the dollar hit its highest in nearly two months, making it more expensive for those buying crude in other currencies.

The downside, if any, was capped by a big drop in crude oil inventories in the United States, the world's top oil consumer.

Brent crude oil futures for August delivery were little changed at $74.42 a barrel after reaching their highest since April 2019 in the previous session. U.S. crude oil futures also traded flat at $72.22 a barrel.

The dollar index surged to two-month highs and short-dated U.S. Treasury yields held at one-year highs after Federal Reserve officials projected hikes in interest rates by 2023, a year earlier than expected, citing reopening of the economy amid the vaccine rollout.

U.S. oil inventories have been falling in a sign of rising demand, helping limit the downside in oil prices.

The Energy Information Administration reported on Wednesday that U.S. crude stockpiles fell by 7.36 million barrels last week, much more than an expected drop of about 2.5 million barrels.

A report released late Tuesday by the American Petroleum Institute (API) showed a drop of 8.5 million barrels in crude inventories in the U.S. in the week ended June 11, while analysts had predicted a draw of 3.3 million barrels for the week.