Oil stabilizes as markets evaluate expectations of a US rate cut

Oil prices stabilized at settlement today, Friday, as markets assessed the volume of demand from China and expectations of lower interest rates after data showed a slowdown in inflation in the United States.

Brent crude futures rose six cents, or 0.08 percent, It reached $72.94 per barrel upon settlement. US West Texas Intermediate crude futures rose eight cents, or 0.12 percent, to $69.46 per barrel.

The two benchmarks achieved a weekly decline of 2.5 percent.

The dollar fell from its highest level in two years. Today, Friday, but it is heading towards achieving gains for the third week in a row after data showed a slowdown in inflation in the United States, two days after the Federal Reserve (the US central bank) lowered interest rates as it had previously been. Expected.

The decline in the dollar makes oil less expensive for holders of other currencies, and lowering interest rates may stimulate economic growth and enhance demand for crude.

Inflation in the United States slowed on a monthly basis. In November after showing slight improvement in the past few months, pushing the main indexes on Wall Street higher in volatile trading on Friday.

The state-owned China Petroleum and Chemical Corporation (Sinopec) said in its annual energy forecast that It was issued yesterday, Thursday, that the country’s oil consumption will peak by 2027 with weak demand for diesel and gasoline.

Imril Jamil, a researcher at the London Stock Exchange Group, said that the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies It will need to adjust supplies to raise prices and calm market volatility due to continuous reviews of its expectations for demand growth. The OPEC+ alliance recently lowered its forecast for global oil demand growth in 2024 for the fifth month in a row.

JB Bank expects… Morgan: The oil market will move from balance in 2024 to achieving a surplus of 1.2 million barrels per day in 2025, in addition to increasing supplies from outside the OPEC+ alliance by 1.8 million barrels per day in 2025, and keeping OPEC production at its current levels.

US President-elect Donald Trump said today that the European Union may face customs duties if the bloc does not reduce the growing deficit with the United States by conducting huge trade transactions in oil and gas with it. Washington.

In a move that may lead to a reduction in supply, Bloomberg reported yesterday, Thursday, that the G7 is studying ways to tighten the imposition of the price ceiling on Russian oil, such as imposing a complete ban or reducing the price ceiling.

Russia exceeded the ceiling of $60 per barrel imposed on it in 2022 by the “Shadow Fleet”. Of ships, which the European Union and Britain have targeted with more sanctions in the past few days.

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