In the wake of U.S. Federal Reserve Chair Jerome Powell’s recent comments suggesting the end of the aggressive rate hikes that dominated 2023, oil prices have seen a notable boost on Friday. This would ease borrowing costs and likely stimulate economic activity.
Additionally, a weaker U.S. dollar, often a consequence of rate cuts, makes oil cheaper for holders of other currencies, further supporting prices. Also, the decision of #BRICS member countries to reform the payment system and remove the US dollar from commercial transactions has been effective in weakening the dollar.
Recent data from China, the top oil importer, has pointed to a struggling economy and slowing oil demand from refiners.
 Some analysts have pointed out that the prospect of weak demand in China is offsetting any gains from risks to supply, with government data showing that crude demand in the country fell 8%  in July.
Crude oil inventories in the United States rose slightly this week, by 347,000 barrels for the week ending August 16, according to The American Petroleum Institute (API), after analysts predicted a 2.9 million barrel dip. For the week prior, the API reported a 5.205-million-barrel decrease in crude inventories.
U.S. shale oil production is poised for a significant boost, with BloombergNEF (BNEF) forecasting a 4.5% increase in output to 13.9 million barrels per day by 2025.  
This represents an additional 600,000 barrels per day compared to this year, thanks to improved well productivity and more efficient drilling and fracking techniques.

A renewed push for a ceasefire in Gaza between Israel and Hamas has also helped ease supply worries and weighed on oil prices. U.S. and Israeli delegations started a new round of meetings in Cairo on Thursday to resolve differences over a truce proposal. Ceasefire talks to stop the war in Gaza have reduced fears the conflict would impact crude oil supplies.
Iran’s new oil minister, Mohsen Paknejad, received a vote of confidence from the parliament on Wednesday. Emphasizing the increase in oil production, he warned that fossil fuel reserves will remain limited in the next two decades without significant development efforts.
In July, according to OPEC figures, Iran saw a month-on-month increase of 20% in crude oil production, hitting 3,271,000 barrels. Iran is expected to see its oil output rise by 400,000 barrels by the end of next yea. The country’s total fossil fuel reserves are set at 1.2 trillion barrels. Iran has a total of 74 oilfields and 22 gas fields in operation.