Singapore August 15 2024: Oil prices rose on Thursday, supported by optimism potential U.S. interest rate cuts will boost economic activity and fuel consumption though concerns over slower global demand curbed gains.
Brent crude futures climbed 17 cents, or 0.21%, to $79.93 a barrel by 0348 GMT, recovering some of the previous day’s losses. U.S. West Texas Intermediate crude increased by 21 cents, or 0.27%, to $77.19 per barrel.
Both benchmarks fell more than 1% on Wednesday after U.S. crude inventories rose unexpectedly and on easing worries about a wider Middle East conflict.
U.S. consumer prices rose moderately in July and the annual increase in inflation slowed to below 3% for the first time in nearly 3-1/2 years, reinforcing expectations the Federal Reserve will cut interest rates next month.
“We saw a correction in Asia trade as the oil market was oversold on Wednesday,” said Yuki Takashima, economist at Nomura Securities, adding that investors are betting the Fed could start cutting rates next month.
