Oil prices show little movement amid mixed economic signals
Date
12/22/2024 7:21:53 AM
(MENAFN) Oil prices remained mostly unchanged on Friday as investors evaluated Chinese demand and the likelihood of interest rate cuts following data indicating a slowdown in US inflation. brent crude futures rose by 6 cents, or 0.08 percent, settling at USD72.94 per barrel. Meanwhile, US West Texas Intermediate crude futures increased by 8 cents, or 0.12 percent, closing at USD69.46 per barrel. Both oil benchmarks finished the week with a decline of roughly 2.5 percent, according to the Al-Attiyah Foundation's Weekly energy Market Review.
The US dollar fell back from a two-year peak but was on track to achieve a third consecutive week of gains, following the release of data showing that US inflation had moderated. This came just two days after the Federal Reserve lowered interest rates, while also reducing its expectations for future rate cuts.
A weaker dollar tends to make oil more affordable for buyers using other currencies, while interest rate reductions could help boost oil demand. The slowdown in inflation in November pushed major stock indices on Wall Street higher, despite volatile trading conditions.
Analysts suggest that concerns over the Federal Reserve potentially pulling back its support for the market through interest rate policies have subsided. Additionally, Sinopec, China’s state-owned oil refiner, stated in its annual energy report that China's crude imports could peak as early as 2025, and the nation's oil consumption is expected to reach its peak by 2027, driven by a decrease in demand for diesel and gasoline.
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