Baghdad/NinaOil prices rose in early trading, today, Wednesday, to extend the gains achieved during the past two days, as the dollar fell after Federal Reserve Chairman Jerome Powell appeared less hawkish on interest rates than the markets expected, and with a sudden decline in US crude stocks.
Brent crude futures rose 11 cents, or 0.1 percent, to $83.80 a barrel at 0119 GMT, extending its gains of 3.3 percent in the previous session.
US West Texas Intermediate crude futures also rose 13 cents, or 0.2 percent, to $77.27 a barrel, after jumping 4.1 percent in the previous session.
The dollar index fell slightly to 103.29 in early trade, extending losses after Powell’s comments on Tuesday, making oil cheaper for holders of other currencies.
With less sharp increases in US interest rates, the market hopes that the world’s largest economy and oil consumer will be able to avoid a sharp slowdown in economic activity or even recession and avoid a decline in oil demand.
And what provided support to the market, the weekly inventory data issued by the American Petroleum Institute showed that crude stocks fell by about 2.2 million barrels in the week ending on the third of February, according to market sources.
However, gasoline and distillate inventories rose more than expected. Gasoline stocks rose by 5.3 million barrels, and distillate stocks, which include diesel and heating oil, rose by 1.1 million barrels./ End 8
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