Oil edged lower as a stronger U.S. dollar outweighed optimism that the Federal Reserve will stick to its path of interest-rate cuts this year.

West Texas Intermediate fell 0.3 per cent to settle near US$81 after a surprise rate cut by the Swiss National Bank strengthened the dollar, which typically pressures commodities priced in the currency. That sapped the benefit of Fed officials maintaining their outlook for three rate reductions this year, which broader markets interpreted as dovish.

U.S. benchmark crude dropped the most in about a month on Wednesday after a technical indicator suggested the recent rally was getting stretched.

Crude has posted a double-digit percentage advance this year, breaking out of a narrow range in recent weeks, after OPEC+ extended production cuts. Geopolitical tensions including Ukrainian drone attacks on Russian refineries and rising transport costs due to attacks on ships in the Red Sea have also supported prices. However, gains have been limited by surging supply from outside the cartel.

Prices:

• WTI for May fell 20 cents to $81.07 a barrel in New York.
• Brent for May settlement slipped 17 cents to settle at $85.78 a barrel.