Today’s News
Oil prices dipped slightly on Friday as oversupply concerns and demand uncertainties—driven in part by a strengthening dollar—outweighed a sharp drop in U.S. fuel stockpiles. Brent crude futures fell 30 cents, or 0.41%, to USD 72.26 a barrel, while U.S. West Texas Intermediate (WTI) dropped 25 cents, or 0.36%, to USD 68.45 as of 0105 GMT.
Image Source: BBC News
For the week, Brent is on track for a 2.2% decline, and WTI is set for a 2.7% decrease. The Energy Information Administration (EIA) reported a 2.1 million-barrel increase in U.S. crude inventories last week, well above analyst forecasts of a 750,000-barrel rise.
In contrast, gasoline stocks fell by 4.4 million barrels, hitting their lowest level since November 2022, defying expectations of a 600,000-barrel increase. Distillate stockpiles, including diesel and heating oil, also unexpectedly dropped by 1.4 million barrels.
ANZ analyst Daniel Hynes noted, “Signs of stronger demand supported oil prices.” However, Hynes pointed out that the market’s focus on oversupply and weak demand outlook exerted downward pressure.
The International Energy Agency (IEA) projected a global oversupply by 2025, even if OPEC+—comprising the Organization of the Petroleum Exporting Countries and allies like Russia—continues output cuts. Rising production from the U.S. and other non-OPEC producers is expected to exceed sluggish demand.
Adding further pressure, the dollar surged to a one-year high on Thursday, marking a fifth consecutive daily gain spurred by higher yields and Donald Trump’s election win. A stronger dollar typically makes oil more expensive for international buyers, potentially lowering demand for dollar-priced crude.
Other News
Trump Team Targets EV Tax Credit Cut, Aiding Tesla
Trump’s transition team aims to end the USD 7,500 EV tax credit, a move that may boost Tesla while impacting competitors like GM and Ford relying on subsidies for their EV rollout.
Dollar Hits Year-High on Powell’s Hawkish Tone
The U.S. dollar strengthened to one-year highs after Fed Chair Jerome Powell hinted at delaying rate cuts, lifting Treasury yields and dampening hopes for December easing.
Dollar Poised for Best Week Since September
The dollar surged to a one-year high, gaining 1.8% this week, as Fed Chair Powell’s cautious tone on rate cuts and inflation expectations under Trump boosted the greenback.
Risk Disclosure:
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer:
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
