Slight Drop in Oil Prices

Oil prices saw a slight decline on Friday in Asian markets, although they are on track for a weekly increase. This trend is driven by optimism over China’s economic stimulus efforts, despite the negative impact of a stronger dollar.

Brent crude futures fell by two cents to $73.24 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped one cent to $69.61 per barrel.

Despite this dip, Brent rose by 0.4% and WTI by 0.2% for the week.

This performance is supported by expectations of an improved Chinese economy, raising hopes for increased oil demand. As the world’s largest oil importer, China has approved the issuance of special Treasury bonds worth 3 trillion yuan ($411 billion) for 2024 to boost its economy.

However, the rising U.S. dollar has weighed on oil prices. The currency has climbed about 7% in the last quarter of 2024, making oil more expensive for holders of other currencies.