Zeynep Beyza Kilic
21 March 2024•Update: 21 March 2024
ANKARA
Oil prices increased on Thursday, supported by demand rises in the US, the world's biggest oil consumer, and a weak US dollar.
International benchmark Brent crude traded at $86.45 per barrel at 9.38 a.m. local time (0638 GMT), a 0.58% rise from the closing price of $85.95 per barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $81.70 per barrel at the same time, a 0.53% rise from the previous session that closed at $81.27 per barrel.
Energy Information Administration (EIA) data on Wednesday showed a 2 million-barrel decline in US commercial crude oil inventories last week, against the market expectation of a decrease of around 900,000 barrels.
Gasoline inventories decreased by 3.3 million barrels over the same period.
The decline in both crude and gasoline inventories signaled a surge in demand in the world's biggest oil-consuming country, lending upward support to oil prices.
The US dollar's depreciation against other currencies contributed to the increase in oil prices by promoting lower-priced trade with holders of other currencies.
The US dollar index, which measures the dollar's value against other currencies, fell 0.55% to 103.27 at 9.01 a.m. (0601 GMT) on Thursday.
Meanwhile, the US Federal Reserve kept interest rates steady during Wednesday's meeting, leaving the federal funds rate unchanged between the 5.25% and 5.5% target range, the highest in 23 years.
Despite the unchanged rates, the Fed expects at least three interest rate cuts in 2024, according to its latest projections.
Experts forecast that interest rate cuts will strengthen economic activity and boost demand in all sectors, including the oil market.
