The price of oil rose by another 1% after it jumped by 1.5% yesterday. The rebound in prices was driven by increased activity from buyers who expected lower prices, as well as a weakening US currency. 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) fell by 0.14% to 101.36, which is not far from the new 2024 low set on Wednesday (100.92).
However, since the beginning of the week, WTI has fallen by 3.7%, and the price of Brent oil has fallen by 2.2%, which was due to concerns about oil demand and the resumption of ceasefire negotiations in the Gaza Strip. Earlier this week, prices for WTI and Brent hit their lowest levels since early January, as revised U.S. employment data heightened concerns about a potential recession that could reduce demand from the world's largest oil consumer.
Meanwhile, recent statistics from China, the world's largest oil importer, also pointed to economic difficulties and a slowdown in oil demand from refineries.
As for the situation in the Middle East, the resumption of ceasefire efforts in the Gaza Strip has helped ease supply concerns and put pressure on oil prices. On Thursday, the U.S. and Israeli delegations began a new round of meetings in Cairo to resolve differences over the truce proposal.