‎Oil drops today, heads for weekly loss

‎Oil drops today, heads for weekly loss

Oil prices declined today, Feb. 17, pressured by stronger US dollar amid expectations that the Federal Reserve would further tighten monetary policy, heading for a weekly loss.

Brent crude futures for April delivery traded 1.05%, or 88 cents lower, at $84.26 a barrel, at 8:55 am Makkah time.

West Texas Intermediate (WTI) crude futures for March delivery fell 1.05%, or 83 cents, to reach $77.66 a barrel.

The US Dollar Index, which is used by traders seeking a measure of the value of USD against a basket of currencies used by US trade partners, gained 0.55% to 104.41 points, leading commodity prices to go down.

Oil prices are on track for a weekly loss, after ending lower for three straight sessions, on fears of tightened monetary policy and large US oil inventories.

The US crude shed 2% this week, hitting the lowest level this year, as US crude oil stocks soared last week by 16.3 million barrels. The oil drop came despite the positive forecasts of the Energy Information Administration (EIA) that China's reopening is expected to drive up demand for oil.