The prices of oil soared this Wednesday April 11 and reached their highest value in almost 3 monthsafter meeting the US inflation datawhich are likely to influence the policy of the Federal Reserve about raising interest rates.
The crude Brent closed up $1.72, or 2.01%, at $87.73 the barrel, while the West Texas Intermediate in the United States (WTI) advanced $1.73, or 2.12%, to $83.26 the barrel.
ANDl US Consumer Price Index (CPI) rose 0.1% last month after advancing 0.4% in February, the Labor Department reported. In the 12 months to March, the CPI rose 5%, the smallest year-on-year increase since May 2021.
“The weaker CPI in the United States has generated doubts whether the Fed will now raise rates at all next month“, said Fawad Razaqzada, Market Analyst at StoneX Brokerage.
“The Falling interest rate expectations are reducing recession concerns and, at the same time, it is helping to support the prices of dollar-denominated assets.”
government bondsan indicator of world stocks, and gold went upwhile the dollar fell sharply after the data. A weaker US currency makes the dollar price of oil cheaper for buyers of other currencies.
Hedge funds have been buying oil futures in the market in recent days in anticipation of improved demand, said Dennis Kissler, senior vice president of trading at BOK Financial.
Lael Brainard, Chief Economic Adviser to the President of the United StatesJoe Biden, and former Vice Chair of the Federal Reserve, also He said he saw inflation coming down.
Markets shrugged off a small build in US crude inventoriesattributing it in part to a congressionally mandated release of oil from the US emergency reserve and lower exports earlier in the month.
Crude inventories increased by 597,000 barrels in the last week to 470.5 million, versus analyst expectations in a Reuters poll for a drop of 600,000 barrels.
US gasoline stocks fell by 300,000 barrels, while those for distillates , which include diesel and heating oil, fell by 0.6 million barrels. Both were lower than analysts’ forecasts.
Source: Ambito
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