As the market evaluates the impact of the weakening US dollar index, Brent crude oil futures prices rose slightly during the early trading session in Asia.

By 12 o'clock Beijing time, the Brent crude oil December contract was priced at $74.53 per barrel, up 15 cents from the previous trading day settlement price on October 24. The settlement price on October 24 fell by 58 cents from the previous trading day.

The WTI crude oil December contract was priced at $70.30 per barrel, up 11 cents from the settlement price on October 24, while the settlement price on that day also dropped by 58 cents from the previous trading day.

On October 24, the US Dollar Index declined against a basket of other currencies. USD depreciation may provide support for oil demand, as the cost of purchasing oil will decrease for foreign currency holders.

Recent trading activity in the federal funds futures market indicates a reduced market expectation of a 50 basis point rate cut by the Federal Reserve at the final two policy meetings of the year, shifting to an expectation of a 25 basis point cut at each meeting. This change reflects the strong performance of the US economy as shown by employment growth and other economic indicators. Despite a slight retreat in the US Dollar Index on October 24, the index has rebounded from a 14-month low at the end of September to a near three-month high over the past month.

However, the decline in refining margins may put pressure on oil demand. Financial results released by the US refining company Valero on October 24 showed a halving of refining margins in the third quarter, leading to a significant decline in company earnings.

Valero's average refining margin for the third quarter was $9 per barrel, far below the $20 per barrel in the same period last year, with margin narrowing across all operating regions. As the first US refiner to report third-quarter performance after a summer of weak demand and declining margins, these factors have led refiners to reduce output, and industry analysts have also lowered financial expectations for the sector.

In the Middle East, traders are closely monitoring the ongoing discussions between US Secretary of State Antony Blinken and officials from Israel and the Middle East. Blinken announced the provision of over 0.135 billion US dollars in new funding for humanitarian assistance. He stated on social media: 'This new funding will help the World Health Organization and UNICEF teams provide critical humanitarian aid in the Gaza Strip and other areas most in need.'

(The above content is from Argus, an independent international energy and commodity price assessment agency)