The price of oil fell by 0.4% after jumping by almost 2.5% yesterday. The price decrease was due to the news that large shipping companies such as Maersk and France’s CMA CGM were resuming passage through the Red Sea.
Meanwhile, the further fall in prices was limited by the negative dynamics of the US currency. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.09% to 101.40, reaching its lowest level since July 28.
Since the beginning of the week, oil prices have risen by more than 2%, partly due to expectations of monetary easing by the Fed. However, the prospect of a prolonged Israeli military campaign in Gaza remains a key driver of price growth. Israel's Chief of Staff Herzi Halevi said yesterday that the war in the Gaza Strip will continue for “many months.”
Meanwhile, the latest US inflation data has strengthened investors' confidence that the Fed will start cutting interest rates next year, with the first cut expected in March. Lower interest rates reduce borrowing costs, which can stimulate economic growth and greater oil demand.
Investors are also preparing for the publication of data on oil reserves in the United States. The American Petroleum Institute will present its report today, and an official report from the Energy Information Administration will be published tomorrow. According to economists' forecasts, tomorrow's data will indicate that oil reserves decreased by 2.6 million barrels last week after rising by 2.9 million barrels a week earlier.