West Texas Intermediate (WTI) Oil price extends its losing streak for the fifth successive session, trading around $68.90 per barrel during the Asian hours on Friday. Crude Oil prices, denominated in dollars, are on track for a weekly decline due to a stronger US Dollar (USD). A higher US dollar makes crude Oil more expensive for buyers using other currencies, which in turn dampens Oil demand.The US Dollar Index (DXY), which measures the value of the US Dollar against its six major peers, trades around 108.50, the highest level not seen since November 2022, following the Federal Reserve (Fed) implemented a hawkish 25 basis point (bps) rate cut on Wednesday. The Fed’s Summary of Economic Projections, or ‘dot-plot,’ showed only two rate cuts in 2025, down from four cuts projected in September.Fed Chair Jerome Powell emphasized the need for caution regarding additional rate cuts, noting that inflation is likely to remain persistently above the central bank’s 2% target. On Thursday, the Bank of Japan (BoJ) maintained its ultra-low interest rates as President-elect Donald Trump’s tariff threats loomed over Japan’s export-driven economy. Meanwhile, the Bank of England (BoE) kept interest rates unchanged, with policymakers divided on the appropriate response to the country’s slowing economic growth.According to Reuters, J.P. Morgan analysts projected that Oil supply will exceed demand by 1.2 million barrels per day. The Oil market is anticipated to face a surplus next year, as weakening economic activity and a sluggish Chinese economy further dampen growth in crude Oil demand.Additionally, energy transition measures have significantly affected demand in China. On Thursday, state-owned energy giant Sinopec announced that the country’s gasoline demand is expected to peak by 2027, as diesel and gasoline consumption weakens in the world’s largest oil importer.More By This Author:Silver Price Forecast: XAG/USD Falls To Three-Month Lows Near $29.50 Australian Dollar Pares Losses Following Consumer Inflation Expectations USD/CAD Marks Fresh Multi-Year Highs Near 1.4350, Awaits Fed’s Guidance
