Oil prices up on weaker US dollar, lower stockpiles

Subscribe Search Search Sort by Relevance Title Date Subscribe ALBAWABA – Oil prices rose Thursday on the United States (US) crude supply reportedly falling from last week’s levels and the US dollar down on the Federal Reserve (Fed) pinning US interest rates and signalling multiple cuts in 2024. Also Read Gold prices up again, stocks worldwide rally on Fed optimism Brent futures rose $0.41, or 0.55 percent, to $74.67 a barrel as of 0658 GMT, Reuters reported, and US West Texas Intermediate (WTI) crude climbed $0.32, or 0.46 percent, to $69.79 a barrel. The market rose in the previous session on worries about the security of Middle East oil supplies after a tanker was attacked in the Red Sea. Meanwhile, lower interest rates reduce consumer borrowing costs, which can boost economic growth and demand for oil. Prospects of the Fed cutting US interest rate cuts by 0.75 percent in 2024, at an anticipated 0.25 percent cut apiece, bolstered economic outlooks for the crude market. The news also sent the US dollar falling for three straight sessions to a four-month low, which also makes oil less expensive for foreign purchasers. The Japanese Yen, Chinese Yuan, and Euro were all up less than 0.7 percent against the dollar, and the Pound Sterling was unchanged, as the US dollar index slipped to 102.56, as reported by Reuters. More so, reports yesterday that US crude stockpiles were lower than a week ago, also helped oil prices up, signalling increased demand for oil, and a possible decline in supply from the US. The US Energy Information Administration (EIA) said energy firms pulled a bigger than expected 4.3 million barrels of crude from stockpiles during the week ending December 8, as imports fell. Oil prices up on weaker US dollar, lower stockpiles - Shutterstock The industry-funded American Petroleum Institute forecast a fall of around 1.5 million barrels, but the EIA reported a 1 percent fall in US stockpiles to 440.8 million barrels. However, strategic petroleum reserves, which are excluded from commercial crude stocks, were unchanged at 351.9 million barrels last week, the data revealed, according to Anadolu Agency. Meanwhile, gasoline inventories rose by around 400,000 barrels to 224 million barrels over the same period. Reuters reported dissipating concerns about demand growth buoying the market as well. Especially after the Organization of the Petroleum Exporting Countries (OPEC) blamed falling crude price slide on "exaggerated concerns" about oil demand growth in its latest monthly report released on Wednesday. Elsewhere, the euro rose 0.25 percent to $1.09015, while the pound sterling was last trading at $1.2642, up 0.19 percent on the day, according to Reuters. The Australian dollar hit over a four-month high at $0.6728 after domestic net employment jumped by 61,500 in November, compared to an increase of around 11,000 that markets had been forecasting. Also Read Fed pins US interest rates, signals possible cuts in 2024 New Zealand’s Kiwi Dollar rose 1.04 percent versus the greenback to $0.6238, despite data showing the New Zealand economy unexpectedly contracted in the third quarter. While in cryptocurrencies, bitcoin rose 0.39 percent to $43,057. Subscribe Sign up to our newsletter for exclusive updates and enhanced content Subscribe Now Subscribe Sign up to get Al Bawaba's exclusive celeb scoops and entertainment news Subscribe to our newsletter for exclusive updates and enhanced content Subscribe