{"id":9096,"date":"2023-12-14T11:45:36","date_gmt":"2023-12-14T11:45:36","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=9096"},"modified":"2023-12-14T11:45:36","modified_gmt":"2023-12-14T11:45:36","slug":"oil-rises-on-u-s-inventory-draw-dollar-weakness","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/9096\/","title":{"rendered":"Oil rises on U.S. inventory draw, dollar weakness"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices rose on Thursday, extending the previous session’s gains, on a bigger-than-expected weekly withdrawal from U.S. crude storage and a weaker dollar after the U.S. central bank signalled lower borrowing costs for 2024.<\/p>\n

Brent futures was up $1, or 1.3%, to $75.26 a barrel as of 0900 GMT. U.S. West Texas Intermediate (WTI) crude climbed 80 cents, or 1.1%, to $70.27.<\/p>\n

“Crude oil prices rebounded before the Fed meeting, and the event lifted them further,” said CMC Markets analyst Tina Teng in a client note.<\/p>\n

The dollar dropped to a fresh four-month low on Thursday after the U.S. Federal Reserve’s latest economic projections indicated the interest rate hike cycle has ended and lower borrowing costs were coming in 2024.<\/p>\n

Fed Chair Jerome Powell said on Wednesday the historic tightening of monetary policy was likely over.<\/p>\n

Lower interest rates reduce consumer borrowing costs, which can boost economic growth and demand for oil. A weaker dollar makes oil less expensive for foreign purchasers.<\/p>\n

Prices were also boosted by a larger-than-expected draw from the U.S. crude inventory, Teng added.<\/p>\n

The U.S. Energy Information Administration (EIA) said energy firms withdrew a bigger-than-expected 4.3 million barrels of crude from stockpiles in the week ended Dec. 8 as imports fell.<\/p>\n

Brent futures are down about 10% since OPEC+ announced plans for a new round of production cuts on Nov. 30. OPEC+ includes OPEC and allies such as Russia.<\/p>\n

Updated on