Crude oil prices fell about 2 per cent from their highest level in the year on June 17 as the dollar strengthened after the US Federal Reserve said it might raise interest rates by the year 2023. Brent futures fell $1.3 to settle at $73.08 a barrel, while US West Texas Intermediate (WTI) crude fell $1.11 to settle at $71.04.

On Wednesday, Brent settled at its highest since April 2019 and WTI at its highest since October 2018. Even though the declines were the biggest daily percentage drops since May, both benchmarks were still up by 40 per cent. The US dollar strengthened to its highest since mid-April against other currencies after the Fed signaled it might raise interest rates.

A firmer greenback makes oil more expensive in other currencies, which could dent demand. Analysts have said Iran could boost oil supplies by 1 million to 2 million barrels per day (bpd) if sanctions are lifted. Another drag on crude prices has been the decline in the US 3-2-1 and gasoline crack spreads – a measure of refining profit margins to their lowest since February on recent weakness in products markets. US gasoline stocks increased by an unexpected 2 million barrels last week. Analysts forecast gasoline stocks would decline 600,000 barrels.