Global oil prices start rising — Reuters
Photo: Global oil prices have begun to rise: (Getty Images)
Global prices for WTI crude oil began to rise amid a cut in the Federal Reserve's interest rate and tensions between the US and Venezuela, according to Reuters.
At the same time, the price of Brent crude oil fell by 3 cents, or 0.05%, to $63.23 per barrel. The contract remained generally stable throughout the week.
Futures for US West Texas Intermediate crude oil fell by 10 cents, or 0.17%, to $59.57 per barrel, although it rose by about 1.7% over the week, marking the second consecutive weekly increase.
About 82% of economists surveyed by the agency between November 28 and December 4 expected a 25 basis point rate cut at next week's Federal Reserve meeting. A rate cut would stimulate economic growth and demand for oil.
Markets also continue to brace for a potential US military intervention in Venezuela after President Donald Trump said late last week that the US would very soon take action to stop Venezuelan drug traffickers on land.
Such a move could jeopardize Venezuela's crude oil production of 1.1 million barrels per day, which the country supplies mainly to China. These factors have supported prices despite growing surpluses.
Interestingly, Saudi Arabia has cut prices for January Arab Light crude oil for delivery to Asia to their lowest level in five years amid oversupply.
Starting on November 26, prices began to rise after falling to a monthly low. On November 27, prices fell again amid forecasts of a potential ceasefire, but this trend did not last long.
Starting on December 1, the market began to grow again after OPEC+ countries confirmed their intention to maintain stable production levels. On December 2, prices remained relatively stable despite Ukraine's drone strikes on Russian oil refineries, and on December 3, oil began to rise gradually.
