Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Oil edges up as US inflation data raises rate cut hopes

Published On :

By Shariq Khan

NEW YORK (Reuters) -Oil prices rose on Thursday, keeping the Brent benchmark above $85 a barrel, as hopes rose for U.S. interest rate cuts after data showed an unexpected slowdown in inflation.

Brent crude futures were up 23 cents, or 0.3%, at $85.31 a barrel by 12:21 p.m. ET (1621 GMT). U.S. West Texas Intermediate crude futures rose 36 cents, or 0.4%, to $82.46 a barrel.

Data showed U.S. consumer prices fell in June, stoking hopes the Federal Reserve will cut rates soon. After the data, traders priced an 89% probability of a rate cut in September, up from 73% on Wednesday.

Slowing inflation and interest rate cuts will likely spur more economic activity, Growmark Energy analysts said.

Fed Chair Jerome Powell acknowledged the recent improving trend in price pressures, but told lawmakers more data was needed to strengthen the case for rate cuts.

The data pulled the U.S. dollar index lower and that should support for oil prices, said Gary Cunningham, director of market research at Tradition Energy. A softer greenback can lift demand for dollar-denominated oil from buyers using other currencies.

Prices also rose on Wednesday, snapping a three-day losing streak after U.S. data showed a draw in crude stocks in the world’s top oil market along with declining inventories and strong demand for gasoline and jet fuel.

Some still believe the oil demand outlook is tenuous. In its monthly oil market report, the International Energy Agency (IEA) saw global demand growth slowing to under a million barrels a day this year and next, mainly reflecting a contraction in China’s consumption.

Still, producer group OPEC in its monthly report on Wednesday kept forecasts for world demand growth unchanged, at 2.25 million for this year and 1.85 million bpd next year.

“OPEC and the IEA demand forecast are wider apart than usual, partly due to the differences of opinion over the pace of the world’s transition to clear fuels,” StoneX analyst Alex Hodes said.

(Reporting by Shariq Khan in New York, Robert Harvey and Paul Carsten in London, Arunima Kumar in Bengaluru, Arathy Somasekhar in Houston and Colleen Howe in Beijing; Editing by Jason Neely, David Holmes, Emelia Sithole-Matarise and David Gregorio)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts