Oil prices rise on moderate US inflation data, strong demand
U.S. consumer prices rose less than expected in April in a boost to financial market expectations for a September rate cut by the Federal Reserve, which could temper dollar strength and make oil more affordable for holders of other currencies.
extended gains from the previous session on Thursday on signs of stronger demand in the U.S. where data showed slower inflation than markets expected, strengthening the argument for an which could result in even stronger demand.rose 42 cents, or 0.5%, to $83.17 a barrel, while U.S. West Texas Intermediate crude (WTI) gained 43 cents, or 0.6%, to $79.06 at 0032 GMT.
U.S. consumer prices rose less than expected in April in a boost to financial market expectations for a September rate cut by the Federal Reserve, which could temper dollar strength and make oil more affordable for holders of other currencies.
U.S. , gasoline and distillate inventories fell, reflecting a rise in both refining activity and , showed data from the Energy Information Administration (EIA).
Crude inventories fell 2.5 million barrels to 457 million barrels in the week ended May 10, the EIA said, versus the 543,000 barrel consensus analyst forecast in a Reuters poll.
Signs of slowing inflation and stronger demand were supporting prices, said in a client note, as is which it said remains elevated.
In the Middle East, Israeli troops battled Hamas militants across Gaza, including Rafah which had been a civilian refuge.
Ceasefire talks mediated by and are at a stalemate, with Hamas demanding an end to attacks and Israel refusing until the group is annihilated.
Gains were constrained after the trimmed its forecast for 2024 oil demand growth, widening the gap between its view and that of producer group OPEC.
this year will grow by 1.1 million barrels per day (bpd), IEA said, down 140,000 bpd from its previous forecast, largely due to weak demand in developed nations of the Organisation for Economic Co-operation and Development.
