Oil prices were headed for their biggest one-day drop in 2 weeks amid a rise in the US dollar and ahead of closely watched inventory reports.

Brent crude, the global oil marker, fell as much as 1.6 per cent to $66.42 — leaving it eyeing its first decline in five days and sharpest one-day drop since February 9.

Meanwhile, West Texas Intermediate, the US crude marker, declined as much as 1.9 per cent to $62.72 a barrel leaving it on track for its first one-day drop in four days and its steepest drop in more than 2 weeks.

The moves came ahead of the American Petroleum Institute’s release of US oil inventory data due later on Tuesday and the official petroleum status report by the Energy Information Administration due Wednesday. Analysts estimate that both reports will show a rise in stockpiles of US crude.

The drop in oil prices also came as the dollar — the currency in which the commodity is denominated — ticked up following Federal Reserve chair Jay Powell’s remarks earlier in the day. The dollar index, a weighted average of the buck against a basket of peers, was up 0.5 per cent to 90.27 — its highest level since Feb 9. Strength in the US dollar makes oil more expensive for foreign buyers.

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