West Texas Intermediate (WTI) crude oil closed higher on Thursday, rebounding from day-prior losses that followed a report showing U.S. oil inventories rose last week, as expectations the Federal Reserve will be ready to cut interest rates next month firm while Middle East tensions continue.
WTI crude oil for September delivery closed up US$1.18 to settle at US$78.16 per barrel, while October Brent crude, the global benchmark, was last seen up US$1.30 to US$81.06.
Oil's rise comes after a Wednesday report showed U.S. consumer prices rose less than expected last month, firming expectations the Federal Reserve will begin cutting interest rates at next month's meeting of its policy group, offering an economic stimulus that is bullish for oil demand. As well, data on Thursday showed U.S. retail sales rose more than expected in July, showing the economy remains solid as inflation slows.
Taut Middle East tensions are also supporting oil, as Iran is still expected to retaliate against Israel following the assassinations of leaders in the Hezbollah and Hamas militant groups it backs, threatening a spreading war that could affect Persian Gulf oil supply.
Still, weak demand from China and an unexpected 1.4-million barrel rise in U.S. oil inventories last week reported by the Energy Information Administration is checking prices.
Source : MT Newswires
