ALBAWABA – The US dollar dipped on Thursday as oil prices rose from the six-month low they hit on Wednesday, capped by demand concerns in the world’s two largest economies.
Both benchmarks made a 0.4 percent rebound from the lows they hit in the last session.
Brent crude futures rose $0.27 to $74.56 a barrel by 0613 GMT, according to Reuters, and United States West Texas Intermediate (WTI) crude futures rose $0.24 to $69.62 a barrel.
Data showed US output remaining near record highs even as inventories fell, which spooked the market.
For the first time in a year, the market structure for Brent contracts switched to trade in contango, Reuters reported, with contracts for near-term delivery cheaper than six months later. WTI contracts have also switched to trade in contango over six months out.
The market moving back into contango suggests there is less worry about the current supply situation. It encourages traders to put barrels in storage.
Oil prices have fallen by about 10 percent since the Organization of the Petroleum Exporting Countries and allies (OPEC+) announced a combined 2.2 million barrels per day voluntary output cuts.
Meanwhile, the US dollar slid, with the Euro, Pound and Yen all up against the greenback and Bloomberg’s Dollar Index Spot down 0.27 percent, as of 1252 Amman Time, at 103.8710.
This handout picture provided by the Saudi Press Agency (SPA) shows Saudi Crown Prince Mohammed bin Salman (R) walking with Russian President Vladimir Putin during a welcoming ceremony in the capital Riyadh on December 6, 2023, as the two are slated to discuss cooperation to bolster oil prices. (Photo by SPA / AFP)
Agence France-Presse (AFP) reported the Euro and Pound up, at $1.0779 and $1.2585, respectively, from $1.0768 and $1.2559, though the Euro was down against the Pound, at GBP 0.8565.
More updated figures, from OilPrice.com, place oil prices at an even higher level than Reuters’.
WTI Crude futures reportedly rose 0.65 percent by 1247 Amman Time, at $69.85, and Brent Crude futures rose 0.79 percent, at $74.89 a barrel.
Meanwhile, OPEC Basket futures were down 3.51 percent, at $79.69 a barrel.
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman met to discuss further oil price cooperation on Wednesday, as members of OPEC+.
Their meeting may strengthen the market's confidence in the impact of output cuts, according to Reuters, with Kuwait and Algeria both reaffirming their support and commitment to the cuts.
Russia has pledged to disclose more data about the volume of its fuel refining and exports. Unnamed OPEC+ sources told Reuters the organization asked Moscow for more transparency on classified fuel shipments from the many export points across the country.
Concerns about China's economy also put a lid on gains in oil prices. Especially with Chinese customs data showing crude oil imports in November down 9 percent from a year ago. High inventory levels, weak economic indicators and slowing orders from independent refiners weakened demand in China.
