Oil Prices Rise as Dollar Weakens

Oil prices rose on Thursday after hitting their lowest levels since late 2021, supported by rising gasoline prices in the United States and a weakening dollar that fueled hopes for fuel demand. Brent crude futures increased by 15 cents, or 0.2 percent, to $76.84 a barrel by 16:00 GMT, while U.S. West Texas Intermediate crude futures rose by six cents, or 0.1 percent, to $70.96 a barrel. The dollar index was trading at its lowest level since February 3, following hints from the Federal Reserve that it is nearing a pause in interest rate hikes. A weaker dollar makes oil priced in U.S. currency more attractive to holders of foreign currencies, boosting demand for crude. U.S. central bank policymakers believe that overcoming inflation may require one more interest rate hike this year. Oil received additional support from gasoline futures trading at a ten-day high on Thursday after the U.S. Energy Information Administration reported that inventories fell by the largest amount last week since September 2021. Furthermore, Goldman Sachs announced on Thursday that demand from China, the world's largest oil importer, continues to rise, with demand exceeding 16 million barrels per day. The bank forecasted that Brent crude prices could reach $97 per barrel in the second quarter of 2024.