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Oil prices are on track for their first weekly gain in two months
The International Energy Agency’s (IEA) bullish forecast for oil demand next year and a weaker dollar pushed oil prices higher on Friday, on track for their first weekly gain in two months. The dollar fell to a four-month low after the Federal Reserve announced that interest rate hikes may be over and that it will cut rates in 2024. A weak dollar makes dollar-denominated oil cheaper for foreign buyers. In addition, the IEA’s monthly report showed that global oil demand growth in 2024 is 1.1 million b/d, an increase of 130,000 b/d from the previous forecast, given the improved U.S. demand outlook and lower oil prices. However, the figure was less than half of OPEC’s forecast of 2.25 million b/d.