Key Currency Exchange Rates for Friday, 12/15/23

Oil is losing steam after rising more than 5 percent last month as Trump repeatedly raises the stakes against China, rattling markets. Along with other risky assets, oil took a blow on concern the escalating tension will threaten growth that drives energy demand amid record U.S. output. That could hinder the efforts of the Organization of Petroleum Exporting Countries and its allies to curb a global glut and prop up prices. “The market is currently concerned for the escalating China-U.S. trade war tensions,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “And with good reason, since this will be bad for global growth and oil demand growth further down the road.” Click Read More below for additional information.

Oil has been trading in a tight range this month, with prices hovering around $60 a barrel as rising U.S. output continues to stoke fears that a shale boom will limit price increases. Still, the Organization of Petroleum Exporting Countries and allied producers are continuing production cuts in an effort to drain a global glut and help prop up prices. A robust global economy has also led banks including Goldman Sachs Group Inc. to project strong demand for oil this year. The IEA raised its estimate for global oil demand growth by 90,000 barrels a day to 1.5 million a day in 2018 as a stronger outlook for developed economies offsets weakening expectations for emerging nations. Steady growth was also reflected in the American Petroleum Institute’s latest report showing U.S. oil consumption rose to the highest in 11 years even as crude production hit a new monthly record. Click Read More below for additional information.