Oil prices rose on Thursday after falling for three consecutive sessions, influenced by a decline in the dollar and the Chinese central bank's efforts to support the real estate market and the economy at large. Brent crude futures increased by 67 cents or 0.8% to settle at $84.12 per barrel, while West Texas Intermediate (WTI) crude rose by $1.01 or 1.3% to $80.93 per barrel. Prices had dropped more than 1.5% in the previous session due to concerns over China's struggling economy and the potential for further interest rate hikes in the United States.
The Chinese central bank stated that it would maintain a reasonable liquidity supply and continue to implement a "precise and strong" policy to support economic recovery in the face of headwinds. Naeem Aslam, an analyst at Zai Capital Markets, noted that oil traders appreciate that China will not accept weak economic activity, following the bank's announcement to adjust and improve real estate policies as soon as possible.
The dollar index fell from a two-month high after the release of the minutes from the Federal Reserve's meeting, which left the door open for more interest rate increases, alongside data released this week pointing to the resilience of the U.S. economy. Increased interest rates raise borrowing costs, potentially slowing economic growth and reducing oil demand. Data released on Wednesday indicated that U.S. crude oil inventories fell by about six million barrels last week due to strong export activity and refinery runs.
