NEW YORK: Oil prices rose more than three per cent on Thursday, extending the previous session’s gains, boosted by a weaker dollar and as the International Energy Agency (IEA) lifted its oil demand forecast for next year.

Brent futures were up $2.64, or 3.6pc, to $76.90 a barrel at 11:30 a.m. EST (1630 GMT). US West Texas Intermediate (WTI) crude climbed $2.53, or 3.6pc, to $72.00.

The market has turned around after dropping on Wednesday to a nearly six-month low.

World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for the United States and lower oil prices.

The 2024 estimate is less than half the forecast of the Organisation of the Petroleum Exporting Countries (Opec).

A drop in the dollar after the US central bank on Wednesday signalled lower borrowing costs for 2024 also boosted prices.

The dollar fell to a fresh four-month low on Thursday after the US Federal Reserve’s latest economic projections indicated the interest rate hiking cycle has likely ended and lower borrowing costs are coming in 2024.

“Obviously the mood for oil has changed dramatically. One of the major catalysts for shaking volatility out of market was the Federal Reserve,” said Phil Flynn, an analyst at Price Futures Group.

Published in Dawn, December 15th, 2023