Crude echoed data that showed a cooling labor market and fueled hopes that the Federal Reserve would cut interest rates sooner.
The price of Petroleum went up this Thursday and the Brent hit a new seven-week high, after the Energy Information Administration (EIA) of USA reported a decline in crude oil inventories, along with data that showed a cooling of the working market that raised hopes that the Federal Reserve (Fed) can cut the interest rates sooner.
In this way, the futures of Brent crude oil for August they rose 64 cents, or 0.75%, to $85.71 a barrel. Meanwhile, the futures of West Texas Intermediate (WTI) U.S. notes for July, due Thursday, gained 60 cents, or 0.74%, to $82.17.
There was no WTI settlement on Wednesday due to a holiday in the United States, which kept trading subdued. The August contract, the most active, added about 60 cents to $81.31.
The market recovers
“The market is definitely recovering,” he said. Phil Flynn, Price Futures Group analyst, echoing the fall in inventories of Petroleum In the United States they fell 5.9 million barrels in the week to June 15, compared with analysts’ expectations for a decline of 1.9 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.3 million barrels, the EIA said.
Additionally, the number of Americans filing new claims for unemployment benefits fell last week. The impulse of working market has declined along with the overall economy as the Fed has tightened its monetary policy to combat the inflation. With that pressure easing, a rate cut this year remains on the table.
Lower rates could support oil prices, which have been dragged down this year by lackluster global demand. A U.S. rate cut would make borrowing cheaper in the world’s largest economy, shoring up appetite for crude as production rises.
Source: Ambito
