The price of oil remained almost unchanged, as support from geopolitical tensions and a reduction in OPEC+ supplies was offset by expectations that the Fed would keep interest rates at the current level for a longer time.
Meanwhile, the US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.04% to 105.75, but remains near its highest level since May 2. The higher value of the dollar makes dollar-denominated goods less attractive to holders of other currencies.
Last week, the prices of WTI and Brent crude oil rose by about 3% amid signs of rising demand for petroleum products in the United States, as well as against the background of a reduction in OPEC+ supplies. U.S. crude oil inventories fell, while gasoline demand increased for the seventh week in a row, and aviation fuel consumption returned to 2019 levels. In addition, amid expectations of demand growth this summer, speculators increased their net-long positions in ICE Brent. Geopolitical risks in the Middle East, and attacks by Ukrainian drones on Russian refineries, also support oil prices.