Oil prices saw a boost on Thursday, driven by rising demand in the US, the world’s top oil consumer, and a weakening US dollar. Brent crude, the international benchmark, rose 0.2% to $74.85 per barrel, while US benchmark West Texas Intermediate (WTI) increased by 0.3% to $71.76 per barrel.
Market uncertainty surrounding the US administration and Federal Reserve policies, along with global concerns over recession and inflation, continue to weigh on oil markets. However, expectations of increased fossil fuel investments in the US under President-elect Donald Trump’s upcoming policies are helping to push prices higher.
The American Petroleum Institute (API) reported a decline in US commercial crude inventories, with stocks falling by 1.4 million barrels for the week ending December 27, indicating stronger demand despite a smaller-than-expected drop. Official data from the US Energy Information Administration is due later on Thursday.
Additionally, a weaker US dollar is aiding oil price increases by making crude more affordable for foreign buyers. The US dollar index dropped by 0.15% to 108.135.
Meanwhile, optimism over China’s economic recovery is also driving up demand projections. President Xi Jinping’s recent statements about the country’s expected 5% growth and record grain output are fueling confidence in China’s continued role as the world’s largest crude importer, further boosting oil prices.
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