Oil rose Thursday as market players reassessed their positions after the Federal Reserve raised concerns about the economy by proposing further rate hikes in the future.
Brent crude futures rose 37 cents, or 0.5%, to $80.97 a barrel as of 0533 GMT. West Texas Intermediate crude futures (WTI) rose 32 cents, or 0.4%, to $74.27 a barrel.
Both indicators lost more than $2 on the previous trading day amid expectations of more aggressive interest rate hikes.
Minutes from Wednesday’s last US Federal Reserve meeting showed that the majority of Fed officials agreed that the risks of high inflation remain a key factor shaping monetary policy, guaranteeing that rate hikes will continue until they are brought under control.
With the reshaped energy market, investors are assessing the signals of revived demand and weak consumption in China, the USA, and other advanced economies.
Meanwhile, Russia’s plans to cut oil exports from western ports by up to 25% in March compared to February gave some support to oil prices.
The dollar index fell 0.1% to 104.39 on Thursday, making oil slightly cheaper for investors trading in other currencies. However, oil price increases were limited by signs of further crude stockpiling.
U.S. crude and fuel inventories rose 9.9 million barrels last week, according to market sources citing Wednesday’s figures from the American Petroleum Institute (API).
US oil inventories have risen each week since mid-December, raising investors’ concerns about demand.
A survey had predicted an increase of 2.1 million barrels in crude oil inventories last week. Official data from the US Energy Information Administration will be released on Thursday at 16:00 GMT.
