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Oil Prices Broadly Flat After Falling on Dollar Surge
Published by Wanda Rich
Posted on November 14, 2024
2 min readLast updated: January 28, 2026
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Published by Wanda Rich
Posted on November 14, 2024
2 min readLast updated: January 28, 2026
Add as preferred source on GoogleLONDON (Reuters) -Oil prices were largely steady on Thursday, with traders holding fire after declines earlier this week on a stronger U.S. dollar and worries about rising supply amid slow
LONDON (Reuters) -Oil prices were largely steady on Thursday, with traders holding fire after declines earlier this week on a stronger U.S. dollar and worries about rising supply amid slow demand growth.
Brent crude futures edged 17 cents higher to $72.45 a barrel at 1203 GMT. U.S. West Texas Intermediate crude futures were up 14 cents to $68.57.
“The primary driver of oil prices, both in the near term and looking ahead, will be the direction of the U.S. dollar,” said Phillip Nova investment analyst Danish Lim.
The dollar’s recent rally has been a key downside pressure, said Lim, who expects oil markets to stay volatile, with a bearish bias.
The dollar surged to a one-year high on Thursday, extending gains from Wednesday’s seven-month high against major currencies after data showed U.S. inflation in October increased in line with expectations.
This, in turn, stoked worries of slowing demand in the United States.
The market is “a concoction of weak demand factors”, with the latest worry being a rally in U.S. 10-year Treasury yields and a surge in the 10-year breakeven inflation rate to 2.35%, said OANDA senior market analyst Kelvin Wong.
(This) increases the odds of a shallow Fed interest rate cut cycle heading into 2025 (and) overall, there is less liquidity to stoke an increase in demand for oil,” he added.
The International Energy Agency (IEA) said on Thursday global oil supply will exceed demand in 2025 even if cuts remain in place from OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies like Russia, as rising production from the United States and other outside producers outpaces sluggish demand.
The Paris-based agency raised its 2024 demand growth forecast by 60,000 bpd, and left its 2025 oil demand growth forecast little changed at 990,000 bpd.
With slowing demand in China, there are few supply-demand factors supporting bullish oil markets, said independent market analyst Tina Teng.
(Reporting by Paul Carsten in London and Katya Golubkova and Trixie Yap; Editing by Clarence Fernandez, Mark Potter and Sharon Singleton)
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for pricing oil globally and is used to set prices for two-thirds of the world's crude oil.
The U.S. dollar is the official currency of the United States and is widely used as a global reserve currency. It is often considered a safe haven in times of economic uncertainty.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing countries that coordinate their oil production policies to manage oil prices and supply.
Crude oil futures are contracts to buy or sell a specific amount of crude oil at a predetermined price on a specified future date. They are used by traders to hedge against price fluctuations.
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