Brent oil turns positive after falling over $1
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positive during a see-saw session, in which it fell more than $1 a barrel at one point on Friday, as traders tried to reconcile signals for oil demand in the coming year.
Brent futures fell 16 cents, or 0.21%, to $76.46 a barrel at 1638 GMT. US West Texas Intermediate (WTI) crude fell 29 cents, or 0.41%, to $71.29.
The market tumbled earlier in the session after a New York Federal Reserve Bank manufacturing survey showed a third month of declines in new orders, which could be a sign of weaker demand for oil in the coming year.
Read Oil drops 2.5% on US inventory surge
“What started the sell-off was the sharp drop in the New York manufacturing numbers,” said Phil Flynn, analyst at Price Futures Group. “This market seems a little more sensitive to every new headline,” Flynn added. “They’re still not sure we’ve found the bottom to this market.”
After the drop, traders took heart from a signalled end to US Federal Reserve interest rate hikes that demand could increase in the coming year.
The dollar fell to a four-month low on Thursday after the US central bank indicated interest rate hikes have likely ended and lower borrowing costs are coming in 2024. The dollar index was broadly steady on Friday.
Published in The Express Tribune, December 16th, 2023.
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