WASHINGTON (dpa-AFX) - Crude oil prices climbed higher on Thursday amid rising risk appetite after the European Central Bank and the Bank of Canada cut interest rates, and on rising optimism the Fed will lower rate in September.
It is widely expected that a rate cut by the U.S. central bank could stimulate economic activity and boost oil demand.
Oil prices have now moved higher for a second straight session, after five successive days of losses. The decision of the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, to phase out voluntary production cuts from October weighed on prices.
West Texas Intermediate Crude oil futures for July ended up by $1.48 or nearly 2% at $75.55 a barrel.
Brent crude futures were up $1.50 or about 1.93% at $79.90 a barrel a little while ago.
The European Central Bank (ECB) has cut interest rate for the first time since September 2019. The ECB today cut key rates by 25 basis points and raised inflation forecasts for 2024 and 2025.
The ECB has raised the headline inflation outlook for 2024 to 2.5% from 2.3% previously and upped the forecast for 2025 to 2.2% from 2%.
The CME Fedwatch tool expects the Fed to stand pat at its policy-committee meeting next week. The tool sees a small chance for a cut at the July 31 meeting and a 57% chance there will be a 25 basis point cut at the September meeting.
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