WASHINGTON (dpa-AFX) - Oil futures settled higher on Thursday, lifted by hopes of an interest rate cut by the Federal Reserve after data showed U.S. consumer price inflation eased more than expected in the month of June. The data outweighed concerns about the outlook for oil demand.
West Texas Intermediate Crude oil futures for August ended down $0.52 at $82.62 a barrel.
Brent crude futures were up $0.44 or 0.52% at $85.52 a barrel a little while ago.
Data from the Labor Department said U.S. consumer price index slipped by 0.1% in June after coming in unchanged in May. Economists had expected consumer prices to inch up by 0.1%.
Excluding food and energy prices, core consumer prices crept up by 0.1% in June after rising by 0.2% in May. Core prices were expected to increase by another 0.2%.
The report also said the annual rate of consumer price growth slowed to 3% in June from 3.3% in May. Economists had expected the pace of price growth to decelerate to 3.1%. The annual rate of core consumer price growth also slowed to 3.3% in June from 3.4% in May. The pace of growth was expected to remain unchanged.
The International Energy Agency (IEA), in its monthly oil market report, has maintained the 2024 global oil demand growth forecast at 970,000 barrels per day.
The report said world oil demand growth slowed to only 710,000 barrels per day in the second quarter of 2024, the lowest quarterly increase in more than a year, as oil consumption in China dropped in April and May.
According to a report released by OPEC on Wednesday, global oil demand will likely remain unchanged at 2.25 million barrels per day for this year and 1.85 million bpd next year.
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