Oil edged higher on US crude inventory reports, strong US dollar limited gains
The EIA’s report highlighted a significant decline in US crude and distillate stocks for the week ending December 13, primarily driven by a notable surge in exports, which increased by 1.8 million barrels to reach their highest level since July.
International benchmark crude oil prices closed higher on Wednesday, December 18, 2024, bolstered by reports from the US Energy Information Administration (EIA) indicating another weekly drawdown in US commercial crude inventories. However, the gains were tempered by the strength of the US dollar.
Brent crude rose by 20 cents to close at $73.39/barrel.
WTI climbed by 50 cents to settle at $70.58/barrel.
The EIA’s report highlighted a significant decline in US crude and distillate stocks for the week ending December 13, primarily driven by a notable surge in exports, which increased by 1.8 million barrels to reach their highest level since July. This uptick in exports underscores a revival in global oil demand.
However, the stronger US dollar—reaching a one-year high against a basket of major currencies—capped the upside potential. The Federal Reserve's indication of slower rate cuts in 2025 has bolstered the greenback, making oil more expensive for foreign buyers and potentially dampening demand.
Written by: Muhammad Hafiz