Crude oil prices steady near multi-year highs

Crude oil prices hovered near multi-year highs on Thursday buoyed by dropping US crude inventories and broadly shrugging off a stronger US dollar.

Brent crude oil futures dropped $0.2, or 0.2%, to $74.19 a barrel by 1156 GMT. They hit their highest since April 2019 in the previous session.

US crude oil futures inched down $0.13, or 0.1%, to $72.02 a barrel, after reaching their highest since October 2018 the previous day.

The US dollar boasted its strongest single day gain in 15 months after the Federal Reserve signalled it might raise interest rates at a much faster pace than assumed.  

A firmer greenback makes oil priced in dollars more expensive in other currencies, potentially weighing on demand.

Data from the Energy Information Administration showed that US crude oil stockpiles in the world's biggest consumer dropped sharply last week as refineries boosted operations to their highest since January 2020, signalling continued improvement in demand.

Also boosting prices, refinery throughput in China, the world's second largest oil consumer, rose 4.4% in May from the same month a year ago to a record high.

The world's biggest oil traders said this week they saw oil prices staying above $70 a barrel with demand expected to return to pre-pandemic levels in the second half of 2022.  

Iran is heading to presidential polls on Friday, with hardline judiciary chief Ebrahim Raisi among the front runners.  

"The outcome of tomorrow’s presidential elections in Iran is also likely to lend support to the oil price... Any rapid return of Iranian oil exports is questionable," Commerzbank said in a note.