ANKARA, June 12 — Oil prices rose today due to a strong demand outlook in the United States (US), the world’s largest oil consumer, and ongoing uncertainties regarding the timing of the US Federal Reserve’s (US Fed) interest rate cut, reported Anadolu Agency.
International benchmark Brent crude traded at US$82.39 per barrel at 10.43am local time (0743 GMT), an increase of 0.6 per cent from the closing price of US$81.92 per barrel in the previous trading session.
The American benchmark West Texas Intermediate traded at US$78.50 per barrel at the same time, a 0.8 per cent rise from the previous session that closed at US$77.90 per barrel.
Data released by the American Petroleum Institute late on Tuesday showed a decrease of 2.42 million barrels in US crude oil reserves, against the market expectation of a draw of 1.75 million barrels.
The large drop in commercial crude inventories indicates growing demand in support of the upward price trajectory.
The US Energy Information Administration will release official inventory data later in the day.
Meanwhile, mixed signals from macroeconomic data released in the US raised uncertainties as to when the US Fed will start cutting interest rates.
Low interest rates reduce the value of the US dollar relative to other currencies, but they also lower the price of oil, which generates stronger demand and supports further price rises.
— Bernama
