Oil prices dropped this week, reflecting weak fuel demand and comments from U.S. Federal Reserve officials that reduced hopes for imminent interest rate cuts. The  U.S. economic indicators suggest a slowdown, with both oil benchmarks dropping about $1 on concerns over high U.S. interest rates and maintaining inflation control, counteracting any bullish sentiment from geopolitical tensions in the Middle East.

Despite potential support from OPEC+ extending supply cuts, the robust U.S. dollar—strengthened by expectations that the Federal Reserve will maintain current interest rates—makes dollar-denominated oil more costly for holders of other currencies.