Brent Dips Below $72 as US dollar strengthens

• Brent fell below $72, pressured by a stronger US dollar
   
• Fed's hawkish stance drives greenback to 2-year high
   
• Sinopec reports peak in China’s gasoline demand
   
• US crude inventory draws offer only brief price support
   
• OPEC+ may act to stabilize prices below $70 threshold

Brent crude oil dipped below $72 per barrel on Friday, marking a weekly decline as the strong US dollar exerted pressure on the dollar-priced commodity.
 

The Federal Reserve’s recent indication of a slower pace for rate cuts next year propelled the greenback to a two-year high, raising fears of dampened fuel demand.

China’s top refiner, Sinopec, added to the bearish outlook by stating that the country’s gasoline demand peaked last year, clouding prospects for the world’s largest crude importer.

Earlier, oil prices had found brief support from EIA data revealing a larger-than-expected draw in US crude inventories and Kazakhstan’s decision to align with OPEC+ on extended production cuts.

However, Brent remains on track for an annual decline, its narrowest trading range since 2019, amid sluggish Chinese demand and increasing non-OPEC production.

However, OPEC+ may step in to stabilize prices if Brent slides below $70.