Oil recovered to $77 per barrel

Oil prices continued to rise on Friday after rising 3% in previous trading, ending the first week of the last eight in positive territory. 

The current price of Brent oil is $76.81 per barrel, the maximum was marked at $77.35. North American WTI oil shows similar dynamics: the current quote is $71.87, the daily maximum is at $72.06 per barrel. 

This week, Brent oil prices rose by almost 2%, and WTI by 0.9%. The oil market was supported by a significant decline in the US dollar, which made commodities more attractive to holders of other currencies. Signals from the US Federal Reserve System about a possible reduction in the base interest rate next year also contribute to higher oil prices, increasing risk appetite in global markets. 

Against this background, traders even ignored the downgrade by the International Energy Agency (IEA) of the forecast of global oil demand in 2023.

Moreover, traders began to close  «short» positions after a long period of oil prices declining, and this also supported the growth of the market. Experts note that the drop in oil prices caused by worries about demand was a key factor that allowed the Fed to signal the end of the policy tightening cycle.

Most Fed officials expect three rate cuts next year, and this expectation has a positive impact on stock and commodity markets.