The price of oil rose by about 0.6% amid partial profit-taking after falling by more than 5% in the previous two trading sessions. Market participants are also preparing for the release of OPEC's monthly report. The market will be looking out for downward revisions in demand forecasts from the group's outlook through 2025, which would add further pressure on prices.
Meanwhile, deflationary risks from China, the lack of specific fiscal stimulus measures from Chinese politicians to support demand, as well as the strengthening of the US currency limit the rise in oil prices. 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) rose by 0.32% to 105.89 (the highest value since July 2).
Experts predict that the US dollar will benefit from Trump's policy, which is likely to keep US interest rates relatively high for a long time. Investors are also waiting for the publication of US inflation data and speeches by Fed policymakers, hoping to get some clues about the prospects for the Fed's monetary policy.