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Oil continued to rally on Thursday as U.S. interest rate hikes could be put on hold and a key vote on the U.S. debt ceiling bill eased after reports of rising commodity prices in the world’s biggest oil consumer.

US Federal Reserve officials indicated on Wednesday that interest rates could be kept on hold this month after the US House of Representatives passed a bill that would freeze the government’s debt ceiling, improving the chances of avoiding a catastrophic deficit.

Brent crude was down 7 cents at $72.53 a barrel, while U.S. West Texas Intermediate (WTI) crude was down 8 cents, or 0.1 percent, at $68.01. Both standards fall on Tuesday and Wednesday.

“Oil markets may have been oversold in the past two trading days,” said CMC market analyst Tina Teng. “Sentiment rose again amid the House debt bill and (the) Fed’s signal to halt rate hikes.”

Mixed demand indicators from China, the world’s largest oil importer, weighed on the market.

“The current sentiment is pessimism,” said Tamas Varga of oil broker PVM. “Investors are pragmatic and risk-averse of late.”

Market sources said US crude inventories rose by 5.2 million barrels last week, citing data from the American Petroleum Institute (API). Government stocks data is at 1430 GMT on Thursday.

The focus is also on the June 4 meeting of the OPEC+ producer group, the Organization of the Petroleum Exporting Countries (OPEC), and allies, including Russia, after exchanging signals that further production cuts are possible.

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