14.12.202308:44:00UTC+00Oil Extends Gains As Dollar Slides On Dovish Fed

Oil extended gains from the previous session on Thursday amid Middle East tensions and data showing a bigger-than-expected drawdown in weekly U.S. stockpiles.

Benchmark Brent crude futures jumped 1.6 percent to $75.44 a barrel, while WTI crude futures were up 1.5 percent at $70.53.

Concerns mounted about the security of Middle East supplies after a tanker attack in the Red Sea off Yemen's coast.

Israel said the war against Hamas will continue with or without international support.

Data released by Energy Information Administration (EIA) showed crude oil inventories in the U.S. dropped by 4.3 million barrels last week, as against an expected decline of about 0.7 million barrels.

A weaker dollar and hopes for interest rate cuts also boosted oil prices after the U.S. Federal Reserve kept interest rates steady, as widely expected, and hinted at three rate cuts in 2024, citing easing inflation and slowing growth.

The European Central Bank and the Bank of England are set to leave interest rates unchanged later today, with investors looking for guidance on future rate path.

Meanwhile, OPEC+ lifted its estimate of 2023 global economic growth in its latest monthly report.

The cartel blamed the latest crude price slide on "exaggerated concerns" about oil demand growth and said it expects oil demand to grow by 2.2 million barrels per day next year.