Crude This Morning Commodities
Crude prices were up, buoyed by a dovish Fed, a softer U.S. dollar and a bigger-than-expected decline in weekly U.S. inventories.
The day range on Brent was US$74.44 to US$75.70 in the early premarket period. The range on West Texas Intermediate was US$69.54 to US$70.79. Both benchmarks were up nearly 2 per cent in the predawn period.
“The prospect of deep rate cuts from central banks next year has boosted the global economic prospects and in turn the price of oil,” OANDA’s Craig Erlam said in an early note.
“The question now is whether central banks are responding just in time or whether it will prove to be just too late. Oil prices over the coming weeks may offer some insight into market expectations on that.
Sentiment drew support from figures released Wednesday by the U.S. Energy Information Administration showing a bigger-than-expected 4.3 million barrel decline in stockpiles last week. Similarly, prices benefitted from a lower U.S. dollar following indications of future Fed rate cuts. A weaker dollar makes crude less expensive for holders of other currencies.
Meanwhile, the International Energy Agency raised its demand forecast for next year early Thursday morning. World consumption will rise by 1.1 million barrels per day in 2024, the Paris-based IEA said in a monthly report, up 130,000 bpd from its previous forecast, Reuters reported.