Mumbai, 24 May (Commoditiescontrol): Crude oil prices remained steady early Friday as market participants assessed the U.S. Federal Reserve's latest comments on interest rates amidst persistent inflation, while rising seasonal U.S. fuel demand provided support.
Brent crude futures edged up 1 cent to $81.37 a barrel, and U.S. West Texas Intermediate (WTI) crude futures dipped by 2 cents to $76.85 a barrel.
Both benchmarks hit multi-month lows on Thursday, with Brent futures closing at their weakest since January and WTI reaching a three-month low.
Macroeconomic challenges in the U.S. kept prices balanced as investors absorbed the minutes from the Fed's recent policy meeting, which indicated that policymakers are still uncertain whether current interest rates are sufficient to control inflation. Some officials expressed a willingness to raise borrowing costs again if inflation spikes. However, Fed Chair Jerome Powell and other officials have suggested that further rate hikes are unlikely.
Meanwhile, strengthening U.S. gasoline demand provided market stability ahead of the Memorial Day holiday weekend, which marks the beginning of the U.S. summer driving season. According to the Energy Information Administration (EIA), gasoline demand in the U.S. reached its highest level since November, supporting the market since U.S. drivers account for about a tenth of global oil demand. Analysts noted that the upcoming driving season is crucial for the recovery of global demand growth.
Attention is now turning to the upcoming OPEC+ meeting on June 1, where the Organization of the Petroleum Exporting Countries and its allies are expected to discuss extending voluntary oil output cuts of 2.2 million barrels per day.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
