The rise in US Treasury yields has put a strain on oil prices, elevating the dollar to its peak against primary currencies since November.
Brent crude has seen a 0.6% decrease, moving closer to $90 a barrel due to the amplified currency value, making oil costlier to purchase.
The US-manufactured West Texas Intermediate has dipped 0.7% to just under $89.
This is notable considering Saudi Arabia and Russia’s commitment to maintain oil supply reductions exceeding one million barrels daily until year-end.
The Opec+ coalition chiefs revealed these intentions in distinct official declarations this Wednesday. Riyadh has cut its crude output by a million barrels daily, while Moscow has reduced exports by 300,000 daily, adding to previous reductions alongside allies.
Oil prices last week neared $100 a barrel in London as these two countries tightened supply while worldwide demand soared, depleting reserves at an unprecedented rate in recent years.
