Jakarta, CNBC Indonesia – World crude oil prices tend to be stable after the market considers expectations for a Federal Reserve (The Fed) interest rate cut and the prospect of oil demand in China.
In Friday’s trading (20/12/2024), WTI crude oil futures prices recorded a depreciation of 0.64% at US$69.46 per barrel. In contrast, Brent crude oil was up 0.08% at US$72.94 per barrel.
Meanwhile, at the start of trading today, Monday (25/10/2024) at 07:30 WIB, WTI crude oil futures prices opened up 0.23% at US$69.62 per barrel. The same goes for Brent crude oil which opened up 0.12% at US$73.03 per barrel.
Oil prices remained stable on Friday and continued to strengthen at the start of trading today as the market considered China’s oil demand and expectations for an interest rate cut after data showed a decline in US inflation.
The strength of oil is driven by the weakening of the US dollar index. In Friday’s trading (20/12/2024), the US dollar index fell 0.73% to 107.62.
The US dollar retreated from a two-year high, but was on track for a third consecutive weekly gain, after data showed a decline in US inflation two days after The Fed cut interest rates but reduced its prospects for interest rate cuts next year.
A weaker dollar makes oil cheaper for holders of other currencies, while interest rate cuts can increase oil demand.
Inflation slowed in November. The Personal Consumption Expenditures (PCE) price index, The Fed’s preferred inflation measure, only showed a 0.1% increase from October.
