ALBAWABA – Oil prices struggled to make hardly any gains on Wednesday, having fallen to the lowest levels in over three months in the previous session, as the US dollar rallied and concerns mounted over waning demand in the world’s top oil consumers, the United States (US) and China.
Brent crude futures barely advanced by $0.15 to $81.76 a barrel by 0636 GMT, according to Reuters, while West Texas Intermediate (WTI) crude futures dipped $0.02 to $77.35 a barrel.
Both declined to the lowest since July 24 on Tuesday.
Meanwhile, the US dollar regained its footing on Wednesday and inched higher, Reuters reported, after a slew of Federal Reserve speakers left the door open to further rate hikes.
Global benchmark Brent traded plunged 4.2 percent on Tuesday, as reported by Bloomberg.
American gasoline demand will drop to a 20-year low next year on a per-capita basis, according to a US government report, with pump prices and inflation likely causing a reduction in discretionary driving.
Oil prices and the US dollar have an inverse relationship - Shutterstock
On the other hand, the greenback tumbled last week on the Fed's decision to pin US interest rates and on data pointing to a cooling US labour market.
Notably, futures point to a roughly 17 percent chance of another hike by January, but there’s a 21 percent chance that rate cuts could come as early as March, according to the CME FedWatch tool.
Bloomberg’s US dollar spot index shows the greenback up 0.22 percent, at 105.7750
The British pound sterling, which earlier in the week hit a seven-week high against the US dollar, above $1.24, was last some distance away, falling 0.19 percent to $1.22755.
The Japanese yen again slipped to the weaker side of 150 per dollar after a slight reprieve last week. It last stood at 150.66 per dollar, Reuters reported.
Oil held near a three-month low as a forecast drop in US gasoline consumption added to a growing array of indicators suggesting the demand outlook is worsening.
