(MENAFN) In the early trading hours of Thursday, oil prices experienced a modest uptick, buoyed by a decline in US crude inventories and growing anticipation of a potential interest rate cut by the Federal Reserve later in the year.
As of 0033 GMT, Brent crude futures for July delivery saw a modest increase of 23 cents, reaching USD83.81 per barrel. Similarly, US West Texas Intermediate crude futures for June rose by 29 cents to USD79.28 per barrel.
The US Energy Information Administration's report revealed a notable decrease in crude inventories, dropping by 1.4 million barrels to 459.5 million barrels. This reduction surpassed analysts' expectations, who had forecasted a decline of 1.1 million barrels, citing heightened refinery activity.
Despite this positive development, the surge in gasoline stocks, unexpectedly swelling by over 900,000 barrels to 228 million barrels, tempered the upward momentum of oil prices.
Market sentiment was also influenced by the growing belief that the Federal Reserve might intervene with a rate cut later in the year. This speculation gained traction following weaker-than-expected jobs data, with investors interpreting a potential rate cut as a catalyst for increased spending on crude oil.
However, hopes for a ceasefire in the Middle East, spurred by optimistic statements from the United States regarding negotiations between Israel and Hamas, acted as a mitigating factor, preventing a more significant surge in oil prices.
MENAFN09052024000045015682ID1108192787
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.