Oil Falls as U.S. Dollar Strengthens on Inflation Concerns

Oil prices decline in early Asian trade due to concerns about inflation outweighing geopolitical risks. Even though tensions in the Middle East are still high, there have been no further escalations in the Israel-Hamas conflict. The recent “tit-for-tat attacks” between Israel and Iran have not led to any additional escalations. The strengthening of the U.S. dollar, as investors reduce their expectations for Federal Reserve rate cuts, has limited any gains in oil prices. WTI crude oil futures for the front-month are down 1.0% at $82.99/bbl, while Brent crude oil futures for the front-month are 1.1% lower at $88.54/bbl.