2024-03-28 02:47:23
Global oil prices rose on Thursday, recovering from two consecutive sessions of decline as investors reevaluated the latest data for US crude oil and gasoline inventories.
By 00:41 GMT, Brent crude futures for May delivery rose 29 cents, or 0.34 percent, to $86.38 per barrel, while the most widely traded June futures contract rose 28 cents, or 0.33 percent, to $85.69.
As for US West Texas Intermediate crude futures for May delivery, they rose 41 cents, or 0.50 percent, to $81.76 per barrel.
In the last session, oil prices came under pressure after US crude oil and gasoline inventories rose unexpectedly last week, driven by a rise in crude imports and a slowdown in gasoline demand, according to Energy Information Administration data.
However, the increase in crude oil inventories was less than the American Petroleum Institute expected.
“We expect US inventories to rise less than usual, a reflection of the global oil market suffering from a slight deficit, and this is likely to support the price of Brent crude in the future,” Bjarne Schildrup, senior commodities analyst at SEB Research, said in a note.
A member of the Board of Governors of the Federal Reserve (the US central bank) said on Wednesday that the latest inflation data, which was disappointing, confirms the Federal Reserve’s justifications for postponing the target cut of the interest rate in the short term, but it did not rule out lowering interest rates later in the year.
“Markets agree that both the Federal Reserve and the European Central Bank will begin cutting interest rates in June,” JP Morgan analysts said in a note. Low interest rates support demand for oil.
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