Oil futures rose close to 2%, bolstered by signals of potential interest rate cuts next year by the Fed and a larger-than-expected weekly withdrawal from U.S. crude storage.
“Positive sentiment in the broader financial market pushed up oil prices, ” ING said.
“However, the market remains cautious as economic concerns continue to cloud demand prospects.”
Global oil-demand growth is expected to slow next year, reflecting weaker major economies in the wake of higher interest rates, according to the IEA.
Meanwhile, base metals and gold rose sharply after the Fed’s dovish turn, a strong bullish tailwind for risk assets and commodity markets, Peak Trading Research said.