Oil prices rose slightly in Asian markets on Friday. This was due to a slight depreciation of the US dollar. When the dollar is weak, foreign buyers can immediately buy goods (such as oil) that are sold in dollars, which leads to a slight increase in prices.
By 2025, the alliance of oil-producing countries known as OPEC+ has increased its overall production by 3 million barrels per day. As a result, there is now more oil on the market, which has led to a decrease in prices.
The US government shutdown has also caused a decline in air travel; and fuel demand has decreased due to the reduction of flights at 40 major airports by up to 10%. As a result, both Brent and WTI have fallen by approximately 2% in the past two weeks.
The US economy is slowing. The dollar has weakened slightly as a result of weak employment data. However, a poor economy will reduce fuel demand, which will reduce the likelihood of continued increases in oil prices.
