Strong U.S. demand boosts oil prices

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March 13, 2024

10:43 am


Oil prices rose on Wednesday as expectations of strong global demand, including the world's largest crude oil consumer, and US inflation held somewhat steady, unaffected by expectations that the Federal Reserve will start cutting interest rates. Soon. .
Brent crude for May delivery was up 36 cents, or 0.44 percent, at $82.28 a barrel by 0020 GMT. U.S. West Texas Intermediate crude for April delivery was up 38 cents, or 0.49 percent, at $77.94.
The Organization of the Petroleum Exporting Countries (OPEC) expects strong growth in global oil demand to 2.25 million barrels per day in 2024 and 1.85 million in 2025, raising expectations for economic growth this year.
U.S. crude oil inventories and fuel stockpiles fell last week in another sign of strong demand, according to market sources, citing U.S. Petroleum Institute figures.
Although U.S. consumer prices rose strongly in February due to higher gasoline and housing costs, analysts still believe the U.S. Federal Reserve will begin cutting interest rates in the summer, signaling some stability in inflation. Low interest rates support oil demand.
Oil prices were under pressure in the previous session after the US Energy Information Administration raised its forecast for domestic oil production. But declines were limited by expectations that OPEC+ production cuts would slow growth in global oil supplies and by recent drone attacks on sites in Russia, including crude refineries. (Reuters)

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