Oil prices rose in early Asian trade on Friday, on track to hit its first weekly increase two months after benefiting from an optimistic forecast for the International Energy Agency (IEA) on oil demand for next year and a weaker dollar.
Brent futures rose 9 cents to $76.70 a barrel at 0006 GMT. West Texas Intermediate (WTI) crude oil rose 10 cents to $71.68.
Both benchmarks are on track for a modest weekly gain, having been lifted by a mid-week announcement from theUS Federal Reserve that it is likely that cut borrowing costs Next year.
The dollar fell to a four-month low on Thursday after the US central bank indicated that interest rate hikes are likely over and that lower borrowing costs will come in 2024.
A weak dollar makes dollar-denominated oil cheaper for foreign buyers.
Meanwhile, the European Central Bank dismissed bets on imminent interest rate cuts on Thursday, reaffirming that borrowing costs would remain at record levels despite lower inflation expectations.
Global oil consumption will increase by 1.1 million barrels per day (bpd) in 2024, the International Energy Agency said in a monthly report, an increase of 130,000 bpd over its previous forecast, citing an improved outlook for oil. US demand and lower oil prices.
The estimate for 2024 is less than half the Organization of the Petroleum Exporting Countries' (OPEC) demand growth forecast of 2.25 million bpd.
Weekly economic data from China, the world's second-largest oil consumer, has added pressure on oil prices in recent weeks.
Monthly data on China's latest retail sales, industrial production, business investment, unemployment and property prices for November will be released later on Friday.



Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here