The head of the US announced yesterday that officials have begun discussions on reducing the monthly purchase of bonds and that interest rates are likely to rise in two phases by the end of 2023. This has supported the US dollar and to the detriment of crude oil prices. The price of crude oil is calculated in dollars, and the rise in the value of the dollar means that the price of crude oil has risen for non-Americans.
However, the crude oil market has been able to defend the recent rally. Even the price of Russian crude oil has been able to reach the highest price level since February 2020. The report on US weekly crude oil reserves was also published yesterday. US crude stockpiles have declined due to rising demand for refineries. A drop in US crude stockpiles could mean a drop in supply or an increase in demand, both of which could push up crude oil prices.