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Oil slipped on stronger US dollar and China's gasoline demand concernsThe US dollar surged to a two-year high following signals from the Federal Reserve of a more measured approach to interest rate cuts in 2025. This appreciation makes dollar-denominated commodities like oil more expensive for holders of other currencies |
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Global crude oil benchmarks fell on Thursday, December 19, pressured by the strengthening US dollar and mounting worries over weakening gasoline demand in China.
Brent crude dropped by 51 cents to settle at $72.88/barrel.
WTI fell by 67 cents to close at $69.91/barrel.
The US dollar surged to a two-year high following signals from the Federal Reserve of a more measured approach to interest rate cuts in 2025. This appreciation makes dollar-denominated commodities like oil more expensive for holders of other currencies, dampening demand and exacerbating bearish market trends.
Compounding the negative sentiment, China’s largest oil refiner reported a notable decline in the nation’s gasoline consumption. Projections suggest this trend will persist as the adoption of electric vehicles accelerates. Analysts warn that this shift could erode a vital foundation of global oil demand, further complicating an already uncertain energy landscape.
Written by: Muhammad Hafiz
