A captivating view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERS/File photo
In Singapore, the price of oil rose on Thursday following positive U.S. inflation and economic data, raising hopes that the Federal Reserve may not increase interest rates as much. Additionally, Chinese trade figures revealed that oil imports in June were the second-highest on record.
Brent crude futures increased by 0.3 percent, or 21 cents, reaching $80.32 per barrel by 0630 GMT. Meanwhile, U.S. West Texas Intermediate crude futures rose by 0.2 percent, or 13 cents, to $75.88.
The latest U.S. data showed a modest rise in consumer prices for June, indicating the smallest annual increase seen in over two years. While one more interest rate hike is expected, oil traders hope that this will mark the end of the tightening cycle, as higher rates can hinder economic growth and reduce oil demand.
Yeap Jun Rong, market strategist at IG, stated that the lower-than-expected U.S. inflation rate suggests that the Fed’s efforts to moderate pricing pressures through tightening cycles are proving effective. This has created a favorable environment for oil prices. Furthermore, the recent weak performance of the U.S. dollar and encouraging Chinese stimulus hopes have also contributed to the bullish sentiment.
China’s crude oil imports in June reached a total of 52.06 million metric tons, equivalent to 12.67 million barrels per day (bpd). This represents a significant increase of 45.3 percent compared to the previous year and marks the second-highest monthly figure on record, according to customs data released on Thursday. From January to June, crude oil imports rose by
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
