2024-04-25 09:12:27
Oil prices rose in early trading, Wednesday, extending their gains in the previous session after industry data showed a surprising drop in US crude inventories last week, an indication of increased demand and a shift in attention away from hostilities in the Middle East.
Brent crude rose
Brent crude futures rose nine cents, or 0.1 percent, to $88.51 per barrel by 0031 GMT. US West Texas Intermediate crude futures increased ten cents, or 0.11 percent, to $83.45 per barrel.
Market sources, citing figures from the American Petroleum Institute, reported that US crude inventories decreased by 3.237 million barrels in the week ending April 19. On the other hand, six analysts polled by Reuters expected an increase of 800,000 barrels.
Traders are awaiting official US data on oil and product inventories scheduled to be released at 10:30 a.m. US time (14:30 GMT) to confirm the significant decline in inventories.
Meanwhile, expectations are growing that the UK and EU will cut interest rates in June, which could help support economic growth and thus increase demand for oil.
Capital Economics said in a note that business activity in the euro zone and the United Kingdom grew this month at the fastest pace in almost a year, indicating that economic growth “continues to gain momentum.”
Traders largely ignored the latest developments in the Middle East in early trading on Wednesday, as residents said Israel had intensified its strikes across Gaza, in some of the heaviest waves of bombing in weeks.
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2024-04-25 09:12:27