Oil prices are heading to record first weekly gains in two months

Oil prices rose in early Asian trading on Friday and are on track to record their first weekly gains in two months, benefiting from the decline in the dollar and optimistic expectations from the International Energy Agency about oil demand next year.

Brent crude futures rose nine cents to $76.70 a barrel by 0006 GMT, while US West Texas Intermediate crude rose ten cents to $71.68.

The two benchmarks are heading for modest weekly gains, supported by the Federal Reserve’s announcement this week that it will likely reduce borrowing costs next year.

The dollar fell to its lowest level in four months on Thursday after the US Central Bank’s signals. The decline in the dollar makes the oil in which it is denominated cheaper for buyers abroad.

The International Energy Agency said in a monthly report that global oil consumption will rise by 1.1 million barrels per day in 2024, an increase of 130,000 barrels per day from its previous expectations, and attributed this to improved demand expectations in the United States and lower oil prices.

These estimates for 2024 are less than half of the Organization of the Petroleum Exporting Countries’ (OPEC) forecast for demand growth of 2.25 million barrels per day.