Oil extends gains on weaker US dollar, IEA demand upgrade; Brent shoots over 3% to $77/bbl
₹6,005 per bbl, having swung between ₹5,797 and ₹6,020 per bbl during the session so far, against a previous close of ₹5,781 per barrel. Also Read: India bought Russian oil at $84.2/bbl in October, highest since December 2022: Report -IEA's 2024 oil demand estimate is less than half the forecast of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). A weaker dollar after the US central bank signalled lower borrowing costs for 2024 also boosted oil prices.
-The dollar dropped to a fresh four-month low on Thursday after the US Federal Reserve's latest economic projections indicated the interest rate hike cycle has ended and lower borrowing costs are coming in 2024. -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.
-The European Central Bank, meanwhile, pushed back against bets on imminent cuts to interest rates on Thursday by reaffirming that borrowing costs would remain at record highs despite lower inflation expectations. -The US Energy Information Administration (EIA) said energy firms withdrew a bigger-than-expected 4.3 million barrels of crude from stockpiles in the week ended December 8 as imports fell. In the previous session, crude oil exhibited significant volatility, rebounding from its lows following a larger-than-anticipated draw in US oil stocks and an attack on an oil tanker in the Red Sea.
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