Oil prices rise weekly despite weekend decline amid global economic concerns
Date
6/23/2024 5:06:58 AM
(MENAFN) Oil prices experienced an overall increase last week, although they dipped by approximately one percent on Friday. This decline was driven by concerns about a potential slowdown in global crude demand growth due to the strengthening US dollar and unfavorable economic data from various regions around the world. Despite signs of improving US oil demand and a decrease in fuel inventories that had pushed crude prices to their highest levels in seven weeks on Thursday, prices fell on the last trading day of the week.
Throughout the week, brent crude futures rose by 3.17 percent, reaching USD85.24 per barrel, while US West Texas Intermediate (WTI) crude prices climbed by 3.16 percent, hitting USD80.73 per barrel. However, on Friday, Brent crude futures dropped by 47 cents, or 0.6 percent, and WTI crude futures decreased by 56 cents, or 0.7 percent, at settlement.
The fluctuations in oil prices were influenced by the dollar's rise to a seven-week high, reflecting its performance against a basket of currencies. This increase in the dollar's value was due to the contrast between the US Federal Reserve's cautious stance on interest rates and the more dovish positions of other central banks that are inclined to reduce rates. Over 2022 and 2023, the Federal Reserve had aggressively raised interest rates to control inflation, which has contributed to the current economic landscape affecting oil prices.
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