Dec 21, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The oil market experienced a slight uptick on Friday, December 20, 2024, as the U.S. Dollar lost ground against major currencies. This shift came in the wake of softer inflation data from the United States.
However, the modest gains were not enough to offset the week's overall decline. Brent crude, the global oil benchmark, closed at $72.94 per barrel, marking a marginal increase of 0.08%.
The West Texas Intermediate (WTI) crude futures settled at $69.46 per barrel, up by 0.11%. Despite these small gains, both benchmarks recorded weekly losses exceeding 2%.
The dollar's weakness played a key role in supporting oil prices . The DXY index, which measures the greenback against a basket of major currencies, fell by nearly 1% during the trading session.
A weaker dollar typically makes oil more affordable for holders of other currencies, potentially boosting demand. Recent U.S. inflation data has fueled speculation about the Federal Reserve's monetary policy trajectory.
The central bank 's latest projections suggest a more gradual approach to interest rate cuts than previously anticipated. Fed officials now foresee only two quarter-point rate reductions in 2025.
This cautious stance reflects the complex economic landscape. While inflation has shown signs of cooling, the labor market remains resilient.
Navigating Economic and Geopolitical Challenges
The Fed aims to strike a balance between curbing inflation and maintaining economic growth. This delicate act has significant implications for oil demand and pricing.
The oil market's response to these economic signals underscores the intricate relationship between monetary policy and commodity prices.
Investors are closely watching for signs of economic strength or weakness that could influence oil demand. The current market dynamics highlight the importance of individual economic decisions in shaping global trends.
As the year draws to a close, the oil market faces uncertainty. Geopolitical tensions, supply constraints, and evolving energy policies continue to influence price movements.
Market participants must navigate these challenges while making informed decisions based on economic data and policy shifts. The slight uptick in oil prices on Friday provides a glimmer of optimism.
However, the weekly decline serves as a reminder of the market's volatility. As we move forward, the interplay between economic indicators, monetary policy, and global events will continue to shape the oil market landscape.
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COMTEX_461079332/2604/2024-12-21T01:10:25
