At the opening of trading today Friday (15/12/2023), the price of WTI crude oil opened 0.04% higher at US$ 71.61 per barrel, as well as the price of Brent crude oil opened higher or rose 0.07% to US$ 76.66 per barrel.

Oil prices rose 3% on Thursday, extending the previous session's gains, driven by a weaker dollar and the International Energy Agency (IEA) raising its oil demand forecast for next year.

World oil consumption will increase by 1.1 million barrels per day (bpd) in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improved US outlook and lower oil prices.

This 2024 forecast is less than half that of the Organization of the Petroleum Exporting Countries (OPEC).

Prices also got a boost as the dollar weakened after the US Federal Reserve on Wednesday signaled lower borrowing costs for 2024.

The dollar fell to its lowest level in four months on Thursday after the U.S. central bank indicated interest rate hikes are likely to end and lower borrowing costs will occur in 2024. On Thursday trading (14/12/2023) the US dollar index fell 0.89% at 101.96.

"Certainly sentiment towards oil has changed dramatically. One of the main catalysts for market volatility is the Federal Reserve," said Phil Flynn, analyst at Price Futures Group, as quoted by Reuters.

The European Central Bank (ECB) decided to hold interest rates. The ECB's key interest rate on its main refinancing operations and the interest rates on its marginal lending facility and deposit facility will remain unchanged at 4.50%, 4.75% and 4.00% respectively.

Oil investors will enter 2024 with growing concerns about slowing economic growth and oversupply, while heightened tensions in the Middle East could fuel price volatility.

Benchmark Brent prices have averaged around US$80 per barrel this year. A Reuters survey of 30 economists and analysts' forecasts shows Brent crude averaging US$84.43 per barrel in 2024.