Your current location is:{Current column} >>Text
Oil prices climb on positive US fuel demand data By Reuters
{Current column}9People have watched
IntroductionBy Jeslyn LerhSINGAPORE (Reuters) -Oil prices bounced back on Thursday after dropping by more than a ...
By Jeslyn Lerh
SINGAPORE (Reuters) -Oil prices bounced back on Today's latest foreign exchange marketThursday after dropping by more than a dollar a barrel the previous day, supported by stronger fuel demand data from the United States, the world's top oil consumer.
futures rose by 56 cents, or 0.7%, to $76.97 a barrel by 0330 GMT, while futures rose 53 cents, also up 0.7%, to $73.09.
A sharper-than-expected drop in U.S. gasoline inventories boosted prices, reflecting stronger demand for transport fuels in the U.S.
However, investors remained cautious as rising global interest rates continued to drive recessionary fears.
"Brent crude prices have managed to regain some footing lately from previous oversold technical conditions, but progress has somewhat stalled with unresolved (global) banking jitters putting sentiment in check," said Yeap Jun Rong, a market strategist at IG.
Ongoing downside risks to global growth conditions could squeeze prices into a range moving forward, with the need for a more concrete catalyst for another push higher, said Yeap.
The latest U.S. data showed consumer prices rose in April, increasing the likelihood that the Federal Reserve will maintain higher interest rates, which can have the knock-on effect of reducing oil demand.
Meanwhile, U.S. gasoline inventories fell by 3.2 million barrels last week, more much more than the 1.2 million barrel draw forecast by analysts, the latest data from the U.S. Energy Information Administration showed. [EIA/S]
Distillate stocks also declined, while U.S. jet fuel demand rose to its highest level since December 2019.
Still the uncertain economic backdrop clouds prospects going forward, said analysts at ANZ.
"While U.S. inflation eased more than expected in April, there are fears the impact of recent rate hikes is only now surfacing in the U.S. economy," the ANZ analysts said, adding bearish sentiment continues to permeate commodities markets amid lacking signs of stronger demand.
Meanwhile, investors are also eyeing detailed talks on raising the U.S. government's $31.4 trillion debt ceiling that kicked off on Wednesday, with Republicans continuing to insist on spending cuts.
The standoff has rattled investors, sending the cost of insuring exposure to U.S. government debt to record highs, as Wall Street grows more concerned about the risk of an unprecedented default.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!
Tags:
Related articles
Crypto Analyst Says Bitcoin is in an Undeniably Bullish Trend By CoinEdition
{Current column}Chartered Market Technician confirms to be in a bullish trend.Adrian Zdunczyk noted the financial m ...
Read moreIs Golden FX a legit or a scam? Golden FX Review
{Current column}FTI's top 100 forex brokers you can refer to for selection. If it is not in the top 100, you sho ...
Read moreIs Nomads FX a legit or a scam? Nomads FX Review
{Current column}FTI's top 100 forex brokers you can refer to for selection. If it is not in the top 100, you sho ...
Read more
Popular Articles
- U.S. PCE price index cools in March; Consumer spending remains flat By
- Is Lintas Mahesa Raya a legit or a scam? Lintas Mahesa Raya Review
- Is Spider Forex a legit or a scam? Spider Forex Review
- Is Ro global a legit or a scam? Ro global Review
- Eleven killed in Russian strike, Ukraine rescue teams sift through wreckage By Reuters
- Is Prime Vertical Markets a legit or a scam? Prime Vertical Markets Review
Latest articles
-
European stock futures drift lower; banking sector remains in focus By
-
Is Trading Portfolio a legit or a scam? Trading Portfolio Review
-
Is RRR Capital a legit or a scam? RRR Capital Review
-
Is FinoCapital a legit or a scam? FinoCapital Review
-
US job growth beats expectations in May; unemployment rate rises to 3.7% By Reuters
-
Investor Alert: Clients complained that HOPOO could not withdraw funds, beware!