Oil Price - Dec 14

[dan_s]

Oil Prices Rise as Fed Pivot Boosts Demand Optimism
from OilPrice.com By Tsvetana Paraskova - Dec 14, 2023, 5:10 AM CST
Oil prices continued to climb on Thursday, with WTI up above $70 and Brent rising to $75.60.
Optimism around both economic growth and oil demand was boosted on Wednesday when the Fed signaled it would cut interest rates next year.
The Fed’s comments also triggered a rally in stocks, bonds, and gold, and sent the U.S. dollar to a four-month low.

Trading Economics:
"WTI crude futures jumped 4% to over $72 a barrel on Thursday, extending a 1.3% gain the day before, prompted by a dovish Fed, a softer dollar, and a bigger-than-anticipated draw in US crude inventories. The Fed held interest rates steady on Wednesday but signaled 75bps of rate cuts for next year, way more than initially expected, sending the dollar to near four-month lows. Also, EIA data showed that US crude stockpiles declined by about 4.3 million barrels last week, falling for the second straight week and exceeding forecasts for a 0.65 million barrel draw. Meanwhile, the International Energy Agency said evidence of a slowdown in oil demand is mounting and cut its demand forecasts for this quarter by almost 400K bpd, mainly due to Europe, Russia and the Middle East. On the supply side, the IEA noted that non-OPEC+ supply growth is set to lose momentum in 2024, although forecast gains of 1.2 mb/d may yet exceed the increase in global oil demand."

Today's oil price increase tells me that Fear of the Fed and Fear of Recession are what has recently pushed down oil prices. Read the IEA's monthly report and it shows global oil supply & demand is extremely tight. What happens if Team Biden is pushed to enforce the sanctions against Iran???