Global Courant
ANKARA
Oil prices rose on Wednesday after positive US data revealed crude stockpiles fell significantly and signaled an improvement in the country’s demand situation, while growing fears that major central banks will continue their hawkish stance in reining in rising inflation capped further increases.
International benchmark Brent crude was trading at $72.73 a barrel at 0756GMT, up 0.30% from the closing price of $72.51 per barrel in the previous trading session on Tuesday.
American West Texas Intermediate (WTI) was also trading at $68.02 a barrel, up 0.47% from the previous session’s close of $67.70 a barrel.
Prices received upside support when the American Petroleum Institute announced an estimated 2.4 million-barrel drop in US crude inventories late Wednesday; this beat the market’s expectation for a decline of 1.4 million barrels.
If crude oil inventories rise faster than anticipated, it indicates that demand is decreasing and crude oil prices are on a downward trend.
The U.S. Energy Information Administration’s data on oil inventories will be released later on Thursday, and prices are expected to fall further if the drop in stock levels is confirmed.
Despite the fears of recession in the USA, economic data indicating that the country’s economy maintains its resilience also supported the demand outlook of the USA and supported price increases.
“The market has taken the view that better-than-expected new home sales and durable goods orders will push the Fed to raise interest rates further at the upcoming Federal Open Market Committee meetings,” said Daniel Hynes, commodities strategist for Australia and New Zealand. Bank Group.
Meanwhile, European Central Bank President Christine Lagarde ruled out the possibility of ending interest rate hikes any time soon.
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