In early Asia trading on Friday, oil prices increased by nearly 1% as markets evaluated tightening supplies against uncertain demand, with all eyes now firmly on a Federal Reserve meeting next week.
Brent oil futures rose 0.84% to $80.31 a barrel, while West Texas Intermediate crude futures rose 0.87% to $76.31 a barrel by 12.03 hrs. Bangkok time.
As China’s stimulus measures raised optimism of fuel demand growth in the world’s largest oil importer, crude prices are poised to end the week higher.
Despite the dollar’s rebounding as traders positioned for the next Fed meeting, oil markets remained cautious, preventing any significant gains. After hitting its lowest point in 15 months earlier in July, the value of the dollar jumped this week.
Oil prices surged earlier in July as the dollar fell on speculation that the Federal Reserve might delay interest rate hikes in response to weaker-than-expected U.S. inflation. Oil could rise further if the central bank delivered dovish signals.
However, markets were worried that the global economy may worsen in the second half of 2023 due to increased U.S. rates, which might impact oil consumption.