(Reuters) – Oil prices rose in early trade on Thursday, amid signs of shrinking U.S. crude inventories, a decline in supply and hopes the Federal Reserve will cut interest rates by the end of the year.
By 0033 GMT, July crude was up 23 cents at 83.81 a barrel. US West Texas Intermediate crude futures for June delivery rose 29 cents to $79.28 a barrel.
The U.S. Energy Information Administration said crude inventories last week fell 1.4 million barrels to 459.5 million barrels, with refining activity exceeding analysts’ expectations in a Reuters poll of 1.1 million barrels (Tadaul: ).
But the administration said an unexpected increase of 900,000 barrels in the week to 228 million barrels prevented prices from rising further.
Oil prices were supported by rising expectations that the US Federal Reserve will cut interest rates by the end of the year, following weaker-than-expected jobs data. A lower interest rate will lead to an increase in spending…
But hopes for a ceasefire in the Middle East kept oil prices from rising further after he said earlier in the week that the rifts between the United States and the Islamic Resistance Movement (Hamas) could be overcome during talks.
(Prepared by Dua Muhammad for Arabian Bulletin)
