May 09, 2024 (MENAFN via COMTEX) --
(MENAFN) Oil prices saw a notable uptick in trading on Thursday, May 9, buoyed by supportive US inventory data and mounting expectations of a potential interest rate reduction by the US Federal Reserve before the year's end. Brent crude futures experienced a 0.4 percent increase, reaching USD83.93 per barrel, while US crude futures climbed by 0.5 percent, reaching USD79.42 per barrel.
The US Energy Information Administration's data revealed a decline in inventories by 1.4 million barrels to 459.5 million barrels, surpassing earlier forecasts which had predicted a decrease of 1.1 million barrels. However, gasoline stocks saw a contrasting increase of 900 thousand barrels during the same period, reaching levels of 228 million barrels.
The growing anticipation of an interest rate cut by the US Federal Reserve gained traction following disappointing jobs data, which fell short of expectations. This speculation bolstered oil prices, with some analysts suggesting that a rate cut could stimulate increased spending on crude oil.
However, the optimism surrounding oil prices was tempered by hopes for a ceasefire in the Middle East, particularly amid indications from American officials suggesting the possibility of reaching an agreement between Israel and Hamas during ongoing negotiations. This geopolitical factor served to mitigate the extent of the rise in oil prices, underscoring the intricate interplay of various geopolitical and economic factors influencing global oil markets.
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