Oil prices rose on Friday after minutes from the Fed meeting showed inflation was under control. Blinken is preparing to visit the Middle East.
Brent crude futures rose 31 cents, or 0.4%, to $77.90 a barrel by 0557 GMT, while West Texas Intermediate (WTI) futures rose 43 cents, or 0.6%, to $72.62 a barrel.
Both indicators, which are on track to finish the first week of the year on the rise, have recouped nearly all of their losses since Thursday when prices fell in a choppy session due to large increases in weekly gasoline and distillate inventories.
While the Fed did not give direct clues about when interest rate cuts might begin, the discussions signaled a growing perception that inflation is under control and growing concerns about the risks a restrictive monetary policy could pose for the economy.
Low interest rates reduce consumer borrowing costs, which can increase economic growth and oil demand.
There’s still a lot of tension in the Middle East, with the Houthi militia launching a maritime drone in the Red Sea and the US launching an airstrike on Baghdad.
Blinken will travel to the Middle East on Thursday for a week of diplomacy, the US State Department said.
US Energy Information Administration data (EIA) showed that gasoline stocks recorded the highest weekly increase in more than 30 years last week, while the supply of distillates, an indicator of demand, fell to its lowest level since 1999.
However, the bearish data was offset by geopolitical concerns, hopes for an economic recovery with the potential easing of interest rates, and ongoing shipping concerns.
