Oil prices fell on Friday after an official said the Fed should delay interest rate cuts for at least two more months, healthy demand indicators and supply concerns could push prices higher in the coming days.
Brent crude futures were down 38 cents, or 0.5%, at $83.29 a barrel at 05:24 GMT, while WTI crude futures were down 40 cents, or 0.5%, at $78.21 a barrel.
U.S. Federal Reserve policymakers should delay interest rate cuts for at least a few more months, Fed Governor Christopher Waller said Thursday.
Higher interest rates for longer periods of slow economic growth could limit oil demand in the world’s largest oil consumer of US. But some analysts say demand remains largely healthy, including in the United States.
U.S. crude oil inventories rose slower than expected last week, while refinery running rates have accelerated and could rise in the coming weeks.
Oil benchmarks gave back some of their gains on Thursday.
The US central bank has kept its policy rate in the 5.25%-5.5% range since last July, and minutes from last month’s policy meeting show most central bankers are worried about moving too quickly to ease policy.
Oil futures rose on Thursday as fighting continued in the Red Sea and the Houthis stepped up attacks near Yemen to show support for Palestinians in the Gaza war.
Netanyahu’s war cabinet has approved sending negotiators for ceasefire talks in Paris on Friday as pressure mounts in the Middle East, according to a source and Israeli media.
