Oil prices increased on Wednesday following a strong demand outlook in the US, the world’s largest oil consumer, and ongoing uncertainties over the timing of the US Federal Reserve’s (Fed) interest rate cut.
International benchmark Brent crude traded at $82.39 per barrel at 10.43 a.m. local time (0743 GMT), an increase of 0.6% from the closing price of $81.92 per barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $78.50 per barrel at the same time, a 0.8% rise from the previous session that closed at $77.90 per barrel.
Data released by the American Petroleum Institute (API) late on Tuesday showed a decrease of 2.42 million barrels in US crude oil reserves, against the market expectation of a draw of 1.75 million barrels.
The large drop in commercial crude inventories indicates growing demand in support of the upward price trajectory.
The US Energy Information Administration (EIA) will release official inventory data later in the day.
Meanwhile, mixed signals from macroeconomic data released in the US raised uncertainties as to when the US Federal Reserve (Fed) will start cutting interest rates.
Low interest rates reduce the value of the US dollar relative to other currencies, but they also lower the price of oil, which generates stronger demand and supports further price rises.
