Oil Prices Rise as Dollar Strength, U.S. Supply Concerns Persist

Oil prices witnessed a rise of over 1 percent on Friday, despite heading for a second weekly decline. The surge was mainly driven by the strength of the dollar, concerns regarding increased U.S. supply, and persistent worries about fuel demand. European trade saw a 1.5 percent jump in benchmark Brent crude futures, reaching $84.58, while WTI crude futures rose by 1.3 percent to $80.10. This rally can be attributed to the efforts made by Saudi Arabia and Russia to restrict supply, as well as reports indicating that China is taking steps to ease mortgage lending for certain home buyers for the purpose of supporting the country’s struggling property sector. Meanwhile, the dollar reached its strongest level since early June as market participants eagerly awaited a speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium later in the day. It is widely anticipated that Powell will maintain his stance on keeping interest rates higher for a longer duration than expected in order to bring inflation back to the target level. Overall, these developments and concerns related to the dollar’s strength, increased U.S. supply, and fuel demand continue to heavily influence the fluctuation of oil prices. Investors and analysts are closely monitoring these factors for any potential impact on the energy market.