Dec 26, 2024 8:27 p.m.

Oil remained largely unchanged amid stronger dollar, intensifying MEA tension

In a day marked by nuanced market movements, oil prices saw little change on Tuesday. The impetus behind this stability was the U.S. dollar, which surged to its highest point in a month

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In a day marked by nuanced market movements, oil prices saw little change on Tuesday. The impetus behind this stability was the U.S. dollar, which surged to its highest point in a month, exerting pressure on the oil markets. The strengthening dollar was a result of diminishing expectations for rate cuts, contributing to the restrained performance of oil prices.

Simultaneously, geopolitical tensions escalated in the Middle East injecting an additional layer of uncertainty into the oil market. The growing concerns about potential disruptions to energy supplies in the region acted as a counterforce to the influence of the surging dollar, providing support for oil prices amid the broader market fluctuations.

Brent crude futures rose 14 cents/barrel or 0.2% to settle at $78.29/barrel. 

WTI ended at $72.40/barrel, down 28 cents/barrel or 0.4%.