Oil Prices Rise Amid Gaza Conflict and Weaker Dollar
Oil Prices Extend Gains Amid Gaza Conflict
Oil prices continued to rise on Thursday as Israel rejected a ceasefire offer from Hamas, further escalating tensions in the Middle East. The conflict has kept the market on edge since October, with limited progress in peace talks.
Impact of Weaker Dollar on Oil Prices
The rise in oil prices was also supported by a weaker dollar, making crude less expensive for traders holding other currencies. The dollar fell to 104.00 at 0730 GMT, contributing to the upward trend in oil prices.
Supply and Demand Dynamics
On the demand side, a stronger-than-expected drawdown in U.S. gasoline and middle distillate stocks buoyed the oil market. Distillate stockpiles fell by 3.2 million barrels to 127.6 million barrels, while gasoline stocks fell by 3.15 million barrels.
Refinery Margins and U.S. Oil Exports
U.S. refinery margins continued to strengthen, driving stronger crude demand as refineries looked to increase run rates and take advantage of stronger margins. Additionally, a 13% year-on-year rise in U.S. oil exports to a record 4.06 million barrels per day in 2023 indicated stronger demand for crude.
Oil prices have seen a positive trajectory amid the ongoing Gaza conflict and the influence of a weaker dollar. The market dynamics, including supply and demand factors, have contributed to the upward trend in oil prices. As the situation unfolds, the impact on global oil markets remains a key area of focus.
