Oil prices are rising slightly with the US government expecting a world record consumption of petroleum products next year, while the dollar remained close to its lowest level in 7 months.
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Oil is rising slightly amid expectations of an increase in fuel demand next year
Oil prices rose slightly today, Tuesday, with the US government expecting a global record consumption of petroleum products next year, while the dollar remained close to its lowest level in 7 months.
The US Energy Information Administration said, in its short-term energy outlook report, that global consumption of liquid fuels is expected to reach 102.2 million barrels per day in 2024, mainly driven by growth in countries such as India and China, which reflects trends in economic activity.
Brent crude futures rose 45 cents, or 0.6%, to settle at $80.10 a barrel. West Texas Intermediate crude futures rose 49 cents, or 0.6%, to $75.12 a barrel.
Markets are also awaiting more clarity on the US Federal Reserve’s plans to raise interest rates, after its chairman, Jerome Powell, avoided commenting on monetary policy and the economy at a conference in Sweden.
All eyes now turn to Thursday’s inflation data, for clues about the near-term outlook.
The dollar remained near its lowest level in 7 months. A weaker dollar could support fuel demand, as it makes commodities denominated in the US currency cheaper for holders of other currencies.
And the two benchmarks rose 1%, yesterday, Monday, after China opened its borders at the weekend for the first time in 3 years.
A preliminary survey revealed that US crude inventories are likely to decline by 2.4 million barrels, while distillate inventories will decline slightly.