Oil rises as concerns over weak US demand ease

Oil drilling rigs

Oil prices edged up today, Dec. 23, as investor concerns on the US demand abated after policymakers cut their 2025 monetary easing forecasts, following the release of the Federal Reserve's preferred inflation gauge last week.

International benchmark Brent crude was trading up 0.36% at $73.20 a barrel, at 09:06 am Makkah time. West Texas Intermediate (WTI) crude rose 0.42% to $69.75 a barrel.

Both grades lost nearly 2% over the past week on concerns about weak US demand after Federal Open Market Committee members cut the forecasts for the pace of monetary easing in 2025.

However, personal consumption expenditures inflation data eased those concerns, with the Fed's preferred measure of inflation rising slightly to 2.4% year-on-year in November, from 2.3% in the previous month.

Separately, the US Congress approved a temporary budget funding bill to avoid a partial government shutdown and reduce the risk of an internal political strike in the world's largest economy.