Oil prices are heading to record their first weekly gains in two months

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Oil prices are heading to record their first weekly gains in two months

Oil prices have risen in early Asian trading on Friday and are on track to record the first weekly gains in two months. This is due to the decline in the dollar and optimistic expectations from the International Energy Agency regarding oil demand next year.

“Changes in prices”

Futures rose: Brent crude oil increased by nine cents to $76.70 per barrel at 00:06 GMT. Meanwhile, US West Texas Intermediate crude rose ten cents to $71.68.

The two raw materials are on track to achieve modest weekly gains, supported by the Federal Reserve announcement. The US stated this week that it will likely lower public borrowing costs soon.

The US dollar fell to a four-month low on Thursday after signals from the US central bank. The lower dollar makes oil cheaper for buyers outside the US.

According to a monthly report by The International Bank, global oil consumption is expected to increase by 1.1 million barrels per day in 2024, which is 130 thousand barrels per day more than previously anticipated. This increase is due to improved demand expectations in the United States and lower oil prices.

For 2024, OPEC had expected a demand growth of over 4.5 million barrels per day. However, the latest estimates show that the actual change will be less than half of this, at 2.25 million barrels per day.