Jan 02, 2025 (MENAFN via COMTEX) --
(MENAFN) Oil prices rose on Thursday, buoyed by a surge in demand in the US, the world's largest consumer of oil, and a weakening US dollar index. The international benchmark Brent crude gained 0.2 percent, reaching USD74.85 per barrel at 10:31 a.m. local time (0731 GMT), up from USD74.69 at the close of the previous session. Similarly, the US benchmark West Texas Intermediate (WTI) rose by 0.3 percent, reaching USD71.76 per barrel, compared to its prior session close of USD71.55.
The oil market continues to be influenced by uncertainty surrounding the incoming US administration and the direction the Federal Reserve will take in its policies this year. Global concerns over the potential for recession and inflation also weigh on asset prices, adding to market volatility.
In the US, expectations of increased investments in fossil energy, driven by policies from President-elect Donald Trump, who takes office on January 20, are supporting price hikes. These policies are anticipated to stimulate further demand and investment in the energy sector.
The American Petroleum Institute (API) reported a drawdown in US commercial crude oil inventories for the week ending December 27, with stocks falling by 1.4 million barrels, though this was below the market expectation of a 3-million-barrel decline. This reduction in stock levels indicates stronger demand in the US. Official inventory data from the US Energy Information Administration (EIA) is expected to be released later on Thursday.
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COMTEX_461479387/2604/2025-01-02T16:48:32
