Brent crude rose 1.3% on Wednesday to settle at $87.34, its highest level since April 30.
The prices of the Petroleum fell on Thursday from multi-month highs touched the day before, as investors took profits amid cautious demand despite a decline in U.S. inventories last week.
By mid-morning, Brent futures were down 40 cents, or 0.46%, at $86.94 a barrel, and crude oil futures were down 19 cents, or 0.46%, at $86.94 a barrel. West Texas Intermediate in the United States (WTI) were down 44 cents, or 0.52 percent, at $83.44 in a trading session thinned by the U.S. Independence Day holiday.
In the previous session, the Brent gained 1.3% to close at $87.34, its highest level since April 30. WTI, meanwhile, hit an 11-week high of $83.88.
These gains came after a bigger-than-expected decline in US crude oil inventories. Energy Information Administration (EIA) reported a draw of 12.2 million barrels in inventories, well above the 680,000-barrel decline forecast by analysts polled by Reuters.
Given the weakness of the dollar and the best prospects for fuel demand in USA Following the EIA data, Thursday’s price weakness is not expected to last, said Tamas Varga, an analyst at PVM.
According to Kelvin Wong, an analyst at OANDA, The fall in crude oil prices during the session is partly due to profit-taking by traders following recent increases.
Concerns about demand were heightened by data showing initial claims for unemployment benefits in USA increased last week, while the number of unemployed also rose.
In contrast, analysts point out that weaker economic data could accelerate interest rate cuts by the Fed. Federal Reserve, which could benefit oil markets.
Source: Ambito
