Oil prices rise as investors evaluate US inventory data

Oil prices rose on Thursday, recovering from two consecutive sessions of decline as investors reevaluated the latest data for US crude oil and gasoline inventories.

By 06:00 GMT, Brent crude futures for May delivery rose 31 cents, or 0.4%, to $86.40 per barrel, while the most widely traded June futures rose 32 cents, or 0.4%, to $85.73. The contracts for May delivery expire on Thursday.

As for US West Texas Intermediate crude futures for May delivery, they rose 39 cents, or 0.50%, to $81.74 per barrel, and both crude oils are heading for gains for the third month in a row, and rose by about 4.5% from last month.

Last session, oil prices came under pressure after US crude oil and gasoline inventories rose unexpectedly last week, driven by rising crude imports and slowing gasoline demand, according to Energy Information Administration data. However, the increase in crude oil inventories was less than the Petroleum Institute’s expectations. American.

“We expect… US inventories to rise less than usual, a reflection of the global oil market, which is in a slight deficit,” Bjarne Schildrup, senior commodities analyst at SEB Research, said in a note.

This is likely to support the price of Brent crude in the future.” Prices also received support from US refinery operating rates, which rose 0.9 percentage points last week.

A member of the Federal Reserve Board of Governors said yesterday, Wednesday, that the disappointing recent inflation data confirms the US central bank’s justifications for postponing the targeted reduction in interest rates in the short term, but he did not rule out lowering interest rates later in the year.

“Markets agree that both the Federal Reserve and the European Central Bank will begin cutting interest rates in June,” JP Morgan analysts said in a note. Low interest rates support demand for oil.

Investors will await indicators from next week’s meeting of the Joint Ministerial Committee for Production Monitoring of the Organization of the Petroleum Exporting Countries (OPEC) amid concerns about supplies due to geopolitical risks.

Analysts at ANZ Research said that OPEC+ is unlikely to make any changes in oil production policy until the full ministerial meeting in June, and added, “The failure to reach a ceasefire agreement between Israel and Hamas keeps tensions rising in the Middle East.”