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Oil prices increase amid US inflation data, OPEC+ meets prospects
(MENAFN) Oil prices experienced an uptick on Friday, bolstered by US inflation data that reinforced expectations of a potential interest rate cut in September. Brent crude futures for July delivery saw a modest increase of 12 cents, or 0.2 percent, reaching USD81.98 a barrel by 13:20 GMT, while US West Texas Intermediate crude rose by 26 cents, or 0.3 percent, to USD78.17. Brent crude futures for August delivery were also on the rise, trading at USD82.25 a barrel, up 37 cents, or 0.5 percent.
The stabilization of US inflation in April, as indicated by recent data, has led traders to anticipate that the US Federal Reserve may move towards implementing a long-awaited cut in interest rates come September. However, both benchmark crude oils are on track for their worst monthly decline since December, following a previous session marked by a sudden increase in US fuel inventories.
The latest figures from the US Energy Information Administration revealed a rise in gasoline stocks by approximately two million barrels, contrary to expectations of a 400,000-barrel decrease. This increase was attributed to heightened demand ahead of the long Memorial Day weekend. The oil market has been facing pressure in recent weeks due to concerns that borrowing costs will remain elevated in the United States, potentially dampening crude oil consumption.
As market sentiment remains uncertain, all eyes are now on the OPEC+ alliance meeting scheduled for Sunday. The OPEC+ alliance is reportedly working on formulating an agreement to extend some of the sharp cuts in oil production until 2025. This meeting is anticipated to have a significant impact on oil market dynamics and investor sentiment, with the potential to influence future price movements and production levels in the global oil market.
The stabilization of US inflation in April, as indicated by recent data, has led traders to anticipate that the US Federal Reserve may move towards implementing a long-awaited cut in interest rates come September. However, both benchmark crude oils are on track for their worst monthly decline since December, following a previous session marked by a sudden increase in US fuel inventories.
The latest figures from the US Energy Information Administration revealed a rise in gasoline stocks by approximately two million barrels, contrary to expectations of a 400,000-barrel decrease. This increase was attributed to heightened demand ahead of the long Memorial Day weekend. The oil market has been facing pressure in recent weeks due to concerns that borrowing costs will remain elevated in the United States, potentially dampening crude oil consumption.
As market sentiment remains uncertain, all eyes are now on the OPEC+ alliance meeting scheduled for Sunday. The OPEC+ alliance is reportedly working on formulating an agreement to extend some of the sharp cuts in oil production until 2025. This meeting is anticipated to have a significant impact on oil market dynamics and investor sentiment, with the potential to influence future price movements and production levels in the global oil market.
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