Oil prices rose during opening hours in Asian markets on Friday, with global benchmark Brent expected to see its first weekly rise in three weeks on signs of improving global demand and slowing oil prices. inflation in the United States, the main consumer of oil.
Brent crude oil prices rose 21 cents, or 0.3%, to $83.48 a barrel by 0018 GMT. The price of West Texas Intermediate (WTI) crude oil rose 18 cents, or 0.2%, to $79.41 per barrel.
Brent futures are expected to rise about 1% on a weekly basis, and WTI futures are expected to gain 1.4%.
Recent declines in oil and refined product inventories in major global trading centers have sparked optimism that oil demand will grow, reversing the trend of rising inventories that had weighed heavily on prices crude oil in previous weeks. Through Thursday, Brent oil futures were down about 10% from a peak of $92.18 a barrel reached on April 12.
US oil and fuel stocks fell last week, while Singapore’s middle distillate stocks fell to their lowest level in almost three months. In Europe, on the Amsterdam-Rotterdam-Antwerp trading hub, gasoline stocks fell 7.5% in the week ended Thursday, according to data from consulting firm Insights Global.
Recent economic indicators from the United States have fueled optimism about global demand. Consumer prices in the United States rose less than expected in April, data showed Wednesday, reinforcing expectations that interest rates will fall in the country.
These expectations were reinforced Thursday by data showing a stabilization of the American job market.
Lower interest rates could help weaken the U.S. dollar, making oil cheaper for investors holding other currencies and boosting demand.
“Financial markets are now betting most on a September interest rate cut by the Federal Reserve, which would continue to temper dollar strength and shift that strength toward commodities and stocks,” Alex said on Thursday Hodes, oil analyst at StoneX. (Reporting by Shariq Khan in New York; Editing by Tom Hogue)
