Africa-Press – Eritrea. Oil prices increased on Friday with a positive demand outlook from the US, but fears of rising interest rates in the country limited price growth.
International benchmark Brent crude traded at $76.92 per barrel at 09.20 am local time (0720 GMT), a 0.52% rise from the closing price of $76.52 a barrel in the previous trading session on Thursday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $72.22 per barrel, up 0.58% from the previous session’s close of $71.80 per barrel.
US commercial crude oil inventories declined by 1.5 million barrels during the week ending June 30, according to data released by the Energy Information Administration (EIA) late Thursday.
Inventories decreased less than the American Petroleum Institute’s expectation of a fall of 1.8 million barrels. Despite a lower-than-expected draw in stocks, oil prices increased with renewed hope of a demand rebound in the world’s largest oil consumer.
The weakening of the US dollar against other currencies aided the rise in oil costs. The US dollar index, which measures the US dollar’s value against other currencies, fell 0.18% to 102.685. The weak dollar is expected to enhance demand by making oil cheaper for those who use foreign currencies.
Nonetheless, the increase in oil prices was curbed as strong US job data stoked investor concerns about tighter monetary policy and more aggressive Federal Reserve interest rate hikes.
Private sector employment in the US increased by 497,000 in June, exceeding market expectations and recording the largest increase since February 2022.
Market players expect the Fed to raise interest rates by 25 basis points during its July 26 meeting.
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