Oil prices fall despite US inventory decline

Oil drilling rigs

Oil prices fell today, April 20, despite the lower-than-expected decline in US crude inventories, as well as recession fears and possibility of interest rate hike.

Brent crude for June delivery dropped 1.80% to $81.62 a barrel at 11:04 pm Makkah time, while WTI crude fell 1.90% to $77.67 a barrel.

The dollar index, which measures the performance of the US currency against a basket of its major peers, settled at 101.96 points, which relieved pressure on oil.

US crude inventories fell 4.6 million barrels during the week ended April 14, compared to estimates of 1.08 million barrels, data from the Energy Information Administration showed.

The lower oil prices were driven by a possible decline in US energy demand, as well as expectations that the Federal Reserve may raise interest rates, which enhances the dollar.