Oil prices fell on Tuesday for the first session in four days away from a three-month high on profit-taking, as dollar gains ground ahead of the Federal Reserve’s policy meeting.
The decline comes ahead of US crude inventory data amid expectations of a drop in US crude stocks for a second week.
Global Oil Prices
US crude fell 0.6% to $78.66 a barrel, with a session-high at $79.05, while Brent fell 0.7% to $81.98 a barrel.
US crude rose 2.75% on Monday, the third profit in a row, marking a three-month high at $79.24, while Brent climbed 2.25%, hitting late April highs at $82.86.
Such gains are due to expectations of a shortage in the second half of the year as both Russia and Saudi Arabia start voluntary production cuts.
The Dollar
The dollar index rose 0.2% on Tuesday for the sixth straight session, scaling a two-week high at 101.65 against a basket of major rivals.
A stronger dollar weighs on commodities and minerals, making them costlier to holders of other currencies.
Dollar’s gains come ahead of the Federal Reserve’s policy meeting, expected to end up with a 0.25% rate hike.
US Stocks
The American Petroleum Institute will release its initial data on US crude stocks, expected to show a drop of 2.4 million barrels last week.