Crude oil dropped below $70/bbl on Thursday as a surging dollar, nearing two-year highs at 108, pressured the commodity following the Fed's hawkish signal of just two rate cuts in 2025. MCX January oil futures slid ₹45, hitting session lows of ₹5917. The EIA reported a 1M-barrel draw in US crude stocks for the second week of December, adding to last week's 1.4M-barrel decline, offering some support. Meanwhile, Kazakhstan reversed plans to increase output and pledged to comply with OPEC+ cuts, joining the UAE in supporting the extension. However, optimism was offset by rising non-OPEC+ supply from the US, Canada, and Brazil. Persistent dollar strength and limited rate cut expectations continue to weigh on oil prices.

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