Apr 24, 2024 (MENAFN via COMTEX) --
(MENAFN) On Tuesday, oil prices experienced a notable uptick, with Brent crude futures climbing by USD1.42, equivalent to a 1.63 percent increase, settling at USD88.42 per barrel. Similarly, US West Texas Intermediate crude futures saw a rise of USD1.46, representing a 1.78 percent gain, reaching USD83.36 per barrel. The surge in oil prices coincided with a decline in the value of the dollar, which dipped to its lowest levels in over a week. Investors in the oil market redirected their attention away from geopolitical tensions in the Middle East towards assessing the broader state of global economies.
The weakening of the dollar was attributed to data from Standard & Poor's Global indicating a slowdown in business activity within the United States during April, reaching its lowest level in four months due to subdued demand. Typically, a decrease in the value of the dollar prompts heightened demand for oil denominated in US currency from investors holding other currencies, contributing to upward pressure on oil prices.
Further bolstering oil prices was positive data from the euro zone, revealing a significant expansion in business activities, marking the fastest pace of growth observed in nearly a year. This optimistic economic outlook lent support to oil prices, signaling potential improvement in demand dynamics beyond the US market. Andrew Lipow, president of Lipow Oil Associates, highlighted the significance of these developments, noting that any signs of improvement in global economic growth are viewed positively by the oil market, particularly amidst concerns surrounding lackluster growth outside the euro zone.
Earlier in the trading session, both benchmark crude oil prices had experienced a slight dip of over a dollar, attributed to easing tensions between Israel and Iran, along with apprehensions regarding demand from China, the world's largest oil importer. Despite these initial fluctuations, the overall trajectory of oil prices remained upward, driven by the combined effects of dollar depreciation and positive economic indicators from the euro zone. As market participants continue to monitor evolving geopolitical dynamics and economic trends, the focus remains on assessing the balance between supply-side fundamentals and demand-side factors shaping oil market dynamics.
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COMTEX_451360973/2604/2024-04-24T17:11:50
