Zeynep Beyza Kilic
24 January 2024•Update: 24 January 2024
ANKARA
Oil prices rose on Wednesday, mainly influenced by demand increases in the world's biggest oil consumer, the US, and a weak US dollar.
The international benchmark crude Brent traded at $79.70 per barrel at 09.49 a.m. local time (0649 GMT), a 0.19% rise from the closing price of $79.55 a barrel in the previous trading session on Tuesday.
The American benchmark, West Texas Intermediate (WTI), traded at the same time at $74.48 per barrel, up 0.15% from Tuesday's close of $74.37 per barrel.
The American Petroleum Institute's (API) data showed a larger than expected drop in crude oil inventories in the US, easing market concerns over falling demand. Crude stocks in the country fell by 6.67 million barrels last week compared to expectations of a 3 million-barrel draw.
Market players now await official data from the US Energy Information Administration, due later in the day.
The decline in the US dollar against other currencies contributed to the rise in oil prices. The US dollar index, which measures the dollar's value against other currencies, decreased by 0.18% to 103.212 at 3.50 a.m. local time (0650 GMT) compared to Tuesday's closing price.
The weak dollar is expected to raise demand by making oil cheaper for other currency holders.
The ongoing conflict in the oil-rich Middle East is putting supplies at risk and pushing prices higher.
The UK's Ministry of Defense stated in a joint statement on Monday that US and British forces hit eight Houthi targets in Yemen as part of air operations they carried out with the support of Australia, Bahrain, Canada and the Netherlands.
In response, Houthis in Yemen called on the US and the UK to withdraw their military ships from the Red Sea.
Since mid-November, the Houthis have carried out over 30 attacks on commercial ships in the Red Sea. The Houthis said their attacks aim to pressure Israel to halt its deadly onslaught on the Gaza Strip, which has killed more than 25,295 people since Oct. 7.
