Oil prices rose again Friday to their highest levels in more than a week as a weaker U.S. dollar boosted commodity prices in the wake of the Federal Reserve’s latest batch of economic and interest rate projections.

Price action

  • West Texas Intermediate crude for January
    CL00,
    +0.46%

    CL.1,
    +0.46%
    gained 48 cents, or 0.7%, to $72.05 a barrel on the New York Mercantile Exchange.

  • February Brent crude
    BRN00,
    +0.42%

    BRNG24,
    +0.42%,
    the global benchmark, gained 49 cents, or 0.6%, to $77 a barrel on ICE Futures Europe.

  • January gasoline
    RBF24,
    +0.95%
    gained 0.7% to $2.13 a gallon, while January heating oil
    HOF24,
    +1.44%
    rose by 1.2% to $2.62 a gallon on Nymex.
  • Natural gas for January delivery
    NGF24,
    +1.55%
    gained 1.5% to $2.43 per million British thermal units.

Market drivers

Oil prices have rebounded this week following their worst streak of losses since 2018. Commodity-market experts have largely attributed the move to a combination of short-covering and a weaker U.S. dollar.

The dollar has fallen 1.7% since the start of the week against major currencies, based on the move in the ICE U.S. Dollar Index
DXY,
a popular gauge of the greenback’s performance. The dollar was paring some of these declines early Friday, with the index trading 0.3% higher at 102.22.

Most of the drop followed Wednesday’s Fed press conference, where the latest batch of official projections showed the central bank penciling in three interest-rate cuts next year.

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