Oil prices rise amid demand increase in US

Oil prices rose on Thursday with a recovery in demand in the US, the world’s biggest oil consumer, although gains were restrained by US Fed interest rate hikes.

International benchmark Brent crude traded at $83.04 per barrel at 9.36 a.m. local time (0636 GMT), a 0.58% rise from the closing price of $82.56 a barrel during the previous session on Wednesday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $79.39 per barrel, up 0.77% from $78.78 per barrel at Wednesday’s close of business.

Data released by the Energy Information Administration (EIA) on Wednesday showed that the fall in US commercial crude oil stockpiles was unexpected by the market.

US commercial crude oil inventories showed a decrease of 600,000 barrels to 456.8 million barrels during the week ending July 21, compared with market forecasts of a rise in stock inventory of around 1.32 million barrels.

The inventory decline indicates a surge in oil demand, supporting upward price movements.

Meanwhile, the US Federal Reserve raised its benchmark interest rate on Wednesday by 25 basis points, taking it to its highest level in more than 22 years.

Fed Chair Jerome Powell left the door open for another 25-basis-point hike this year.

‘I would say it is certainly possible that we will raise funds again at the September meeting if the data warrants it,’ he said in a post-meeting news conference.

Market players now turn to the European Central Bank’s (ECB) interest rate decision and ECB President Christine Lagarde’s statements expected later in the day.

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• Oil Prices