Oil prices are on a slight rise with the US government expecting world record consumption of petroleum products next year, while the dollar remained near its lowest level in 7 months.
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Oil is up slightly amid expectations of increased fuel demand next year
Oil prices rose slightly on Tuesday as the US government expects record global consumption of petroleum products next year, while the dollar remained near its lowest level in 7 months.
The US Energy Information Administration said in its near-term energy outlook report that global consumption of liquid fuels is expected to reach 102.2 million barrels per day in 2024, driven mainly by growth in countries such as India and China, reflecting trends in economic activity.
Brent crude futures rose 45 cents, or 0.6%, to trade at $80.10 a barrel. West Texas Intermediate crude futures rose 49 cents, or 0.6%, to $75.12 a barrel.
Markets are also waiting for more clarity on the US Federal Reserve’s plans to raise interest rates after its chairman, Jerome Powell, declined to comment on monetary policy and the economy at a conference in Sweden.
All eyes are now turning to Thursday’s inflation data for clues to 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 jumped 1 percent on Monday after China opened its borders over the weekend for the first time in 3 years.
A preliminary survey revealed that US crude inventories are expected to decline by 2.4 million barrels, while distillate inventories will decline slightly.
