OIL
Crude oil prices are nearly unchanged today, hovering above the $68 mark, close to November's recent lows seen in the previous session. Oil prices remain under pressure after an OPEC report projected a slower growth in global oil demand for 2024 and 2025 than earlier forecasts. This demand downgrade primarily reflects weaker-than-expected economic activity in China, where growth is expected to fall short of previous predictions despite Beijing's stimulus efforts. Adding to the bearish sentiment for oil is the stronger dollar, which has appreciated significantly against other major currencies following the recent US presidential election. Since oil is priced in dollars, a stronger greenback makes it relatively more expensive for foreign buyers, pushing prices lower on global markets. Further declines are possible if upcoming US inflation data, expected later today, shows an increase in consumer prices. Such a result would reduce the likelihood of a Fed rate cut, further supporting the dollar and adding additional downside pressure to oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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