For the week, WTI is down 7% and Brent 6%, the fourth straight week of declines for the benchmark indices and the first time a losing streak has occurred since December 2021.
After the US Federal Reserve raised interest rates by 75 basis points on Wednesday, central banks around the world followed suit, raising the risk of an economic slowdown.
“The crude oil market is under strong selling pressure as the US dollar remains on a strong upward trajectory amid further reduction in risk appetite,” analysts at energy consultancy Ritterbusch and Associates said.
The US dollar was on track for its highest close against a basket of other currencies since May 2002. A strong dollar reduces demand for oil because it makes fuel more expensive for buyers using other currencies.
On the supply side, efforts to revive the 2015 Iran nuclear deal have stalled as Tehran insists on shutting down UN nuclear watchdog investigations, a senior US State Department official said. United States, which alleviates expectations of a resurgence of Iranian crude exports.