Oil prices fell Thursday to their lowest level in about three months after the U.S. dollar strengthened on concern that the global economic recovery might slow and the Federal Reserve’s signals that it will scale back stimulus measures.
Brent crude oil, the international benchmark in energy markets, dropped 2.6% to $66.45 a barrel. West Texas Intermediate futures, a key U.S. gauge, declined 2.7% to $63.69 a barrel. Both benchmarks ended at their lowest daily close since May.
The dollar’s advance to its strongest level since early November added to recent worries in energy markets. Investors had already grown increasingly nervous in recent days that rising Covid-19 cases are threatening to hobble the global recovery and could sap demand for oil in major economies like China.
A stronger dollar tends to put pressure on commodities denominated in the U.S. currency—such as oil and industrial…