Brent crude futures rose 0.4% to $79.69 a barrel. Meanwhile, West Texas Intermediate in the United States increased 1.1% to US$75.68.
oil prices trades up this Wednesday, July 12 and continues trading at ten week highsin a market caught between the expectations that the supply cuts by the world’s largest exporters drive prices up and the concern that global economic weakness will weaken demand.
The Brent crude futures up 0.4% until the $79.69 the barrel. Meanwhile, the West Texas Intermediate in the United States (WTI) increases by 1.1% until the $75.68. That way, both values touch highs since late April.
“Fundamentally, we should come to a situation of supply deficit in the third quarterbut it remains to be seen if this is overcome by the recession concerns and the feeling of caution around rate hikes“, said Suvro Sarkarprincipal energy analyst at DBS Bank.
The US inflation data of this wednesday give clues about rate prospects of interest in the largest economy in the world.
Markets expect one more rise, but that the cycle of increases in the United States is reaching its ceiling. Nails higher rates can slow economic growth and reduce demand for oil.
Oil inventories in the United States grew by about 3 million barrels in the week to July 7, market sources said, citing industry figures from the American Petroleum Institute. Analysts polled by Reuters had expected a 500,000-barrel build in crude stocks.
Crude prices were also supported by the dollar weakness and the optimism around Chinese stimulushe pointed Fiona Cincotta of City Index.
Source: Ambito
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