Nov 13, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) On November 12, oil prices experienced a slight increase, defying the strengthening of the dollar and a downward revision of demand forecasts by OPEC. This development highlights the complexities of the global oil market.
The most actively traded Brent crude contracts for January 2025 rose by 0.08%, settling at $71.89 per barrel on the Intercontinental Exchange in London.
Meanwhile, West Texas Intermediate (WTI) crude for December saw a modest increase of 0.12%, reaching $68.12 per barrel on the New York Mercantile Exchange.
Despite this uptick, oil prices have dropped over 5% in the last two sessions, reflecting ongoing volatility. Recently, prices hit their lowest point in more than two weeks, impacted by both the dollar's strength and OPEC 's revised demand outlook.
The DXY index, which measures the dollar against a basket of six major currencies, surpassed 106 points for the first time since July.
This surge in the dollar's value comes as markets react to Donald Trump's presidential victory, leading to increased buying pressure on the U.S. currency.
A stronger dollar makes oil more expensive for buyers using other currencies, potentially dampening global demand.
OPEC's latest monthly report indicates a cautious outlook, reducing its forecast for global oil demand growth to 1.82 million barrels per day (bpd) for this year, down from last month's estimate of 1.93 million bpd.
Additionally, OPEC cut its 2025 demand growth projection from 1.64 million bpd to 1.54 million bpd. The ongoing conflicts in the Middle East continue to influence market dynamics, adding another layer of uncertainty to global oil supply and pricing strategies.
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COMTEX_459761680/2604/2024-11-13T09:15:30
