2024-08-15 08:17:21
Oil prices rose in Asian trade today, boosted by expectations that potential U.S. interest rate cuts will boost economic activity and fuel consumption, although concerns over slower global demand capped gains, Reuters reported.
European benchmark Brent crude futures rose 17 cents, or 0.21 percent, to $79.93 a barrel.
Quotations of American light crude oil rose by 21 cents or 0.27 percent to 77.19 dollars per barrel, BTA reported.
Both contracts were down more than 1 percent yesterday after U.S. crude inventories rose unexpectedly and on easing concerns about a broader conflict in the Middle East.
US consumer prices rose modestly in July and the annual increase in inflation slowed to below 3 percent for the first time in three and a half years, boosting expectations that the Federal Reserve Board will cut interest rates next month.
“Oil prices are expected to remain under pressure going forward as concerns persist that global demand, particularly in China, will see more limited growth,” said Yuki Takashima, economist at Nomura Securities.
Separate official data said U.S. crude inventories rose by 1.4 million barrels in the week ended Aug. 9, compared with forecasts for a 2.2 million-barrel draw, rising for the first time since late on June.
Earlier this week, the International Energy Agency cut its 2025 forecast for oil demand growth, citing the impact of a weakened Chinese economy on consumption. This comes after OPEC cut its expected demand for 2024 for similar reasons.