Oil investors will head into 2024 with strong concerns
$WTI Crude Oil - main 2402(CLmain)$
The depreciation of the US dollar, coupled with the rising market sentiment on the possibility of the Federal Reserve to cut interest rates, and the International Energy Agency (IEA) to increase next year's oil demand forecast, is helping to support crude oil prices. The IEA raises its forecast for global oil demand in 2024. In its monthly report, the IEA said world oil consumption would increase by 1.1 million barrels per day in 2024, up 130,000 barrels per day from its previous forecast, citing an improving outlook for the United States and lower oil prices.
Lower interest rates lower borrowing costs for consumers, which boosts economic growth and oil demand. A weak dollar makes oil cheaper for foreign buyers. Oil investors will head into 2024 with strong concerns about slowing economic growth and oversupply, while rising tensions in the Middle East could trigger price volatility.
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