WASHINGTON (dpa-AFX) - Following the significant rebound seen in the previous session, the price of crude oil showed another strong move to the upside during trading on Friday.
Crude for October delivery surged $1.82 or 2.5 percent to $74.83 a barrel after jumping $1.08 or 1.5 percent to $73.01 a barrel during Thursday's session.
Despite the notable recovery seen over the past two days, the price of crude oil fell by 0.9 for the week due to sell-off seen earlier in the week.
The extended rebound by crude oil futures may have reflected optimism about the outlook for U.S. demand after Federal Reserve Chair Jerome Powell signaled the central bank is prepared to begin cutting interest rates.
'The time has come for policy to adjust,' Powell said at the Jackson Hole Economic Symposium, although he noted the 'timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.'
Powell's determination that it is time for the Fed to begin cutting rates comes as his 'confidence has grown that inflation is on a sustainable path back to 2 percent.'
Fed officials have repeatedly said they need 'greater confidence' inflation is moving sustainably toward the central bank's 2 percent target before they would consider cutting rates.
The remarks by Powell came as recent inflation data has increased confidence the Fed will cut interest rates at its next monetary policy meeting in September.
However, the price of crude oil remains well off its recent highs, as worries about the outlook for demand from China continue to overshadow geopolitical concerns.
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