(Bloomberg) — Oil edged lower on signs of a possible de-escalation of tensions in the Middle East, a surging US dollar, and concerns about demand.
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West Texas Intermediate fell to near $68 a barrel after ending Wednesday modestly higher, with Brent closing above $72. Israel was rushing to prepare a cease-fire deal on Lebanon as the government adjusted to the prospect of Donald Trump’s White House return, according to a Washington Post report.
An additional drag for oil came from a steadily rising US currency, which has rallied to the highest level in two years after Trump’s win. That makes commodities priced in the greenback more costly for most buyers.
Crude has alternated between weekly gains and losses since mid-October with traders weighing tensions in the Middle East, OPEC+ supply policy, and risks to consumption growth, especially in China. There’s widespread concern that the global market will flip to a glut next year, with Morgan Stanley trimming its price forecasts this week given the softening outlook.
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