Oil futures trading volumes have been thin and prices volatile as traders have to balance weaker energy demand with tighter supply as a result of the loss of Russian barrels following the invasion of Ukraine by Moscow.
The European Central Bank will join other central banks in raising interest rates, focusing on fighting runaway inflation rather than the economic slowdown, which may weigh on oil demand. The announcement is scheduled for 1215 GMT.
European stocks, which typically move in tandem with oil prices, also fell ahead of the rate decision.
US gasoline inventories rose by 3.5 million barrels last week, government data showed on Wednesday, widely beating analyst forecasts.
“US gasoline demand is struggling to get going during peak summer driving season,” said PVM analyst Stephen Brennock.
The Bank of Japan sees inflation above its target this year in new forecasts released on Thursday, but the central bank kept interest rates ultra-low.
Libya’s National Oil Corp (NOC) said on Wednesday that crude production had resumed at several fields following the lifting of the force majeure on oil exports last week.
As for natural gas, Gazprom resumed flows through the Nord Stream 1 pipeline, which supplies more than a third of Russian gas exports to the European Union.
However, one of Canada’s main oil export arteries, the Keystone pipeline, was operating at a reduced rate for a third day on Wednesday, trader TC Energy said.
By Shadia Nasralla and Rowena Edwards, Reuters Agency
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
