The price for a barrel of crude oil closed higher on Friday, making up for losses earlier on the day of the strong dollar during the course of the trading day.
The US dollar and oil prices often move in opposite directions. A strong dollar makes oil expressed in dollars more expensive for non-dollar holders.
On a weekly basis, the price of crude oil closed 1 percent higher.
WTI reached its highest price in two and a half years on Wednesday, but began to decline due to the strong dollar, after the Fed reported raising interest rates earlier than planned due to rising inflation.
“The strength of the dollar after the Fed’s aggressive shift dominates the oil market,” said Oanda’s analyst Sophie Griffiths. “The bullish trend in oil remains intact, thanks to optimism around demand prospects,” she added.
In addition, the Iranian presidential elections are taking place today. Although in the vote a hardliner could expel the moderate Hassan Rouhani, the support of Iran’s supreme leader [for the talks] means that “a change of president is not expected to derail nuclear talks,” said market analyst Helge Andre Martinsen of DNB Markets.
Oil service provider Baker Hughes reported Friday for the second consecutive week a weekly style of the number of operating oil drilling facilities in the US. The group said that the number of active American drilling platforms increased by eight to 373 platforms last week. The total number of active American drilling platforms, including those drilling for gas, increased by nine to 470 platforms.
A July future for a barrel of crude oil closed on Friday 0.8 percent, or $ 0.60, higher at $ 71.64 on the New York Mercantile Exchange.