Global Oil Prices Recover as Investors Reassess Inventory Data

28 Mar 2024 , 10:36 AM

On Thursday, global oil prices rebounded after experiencing two consecutive sessions of decline, as investors reevaluated the latest U.S. crude oil and gasoline inventories data and resumed buying activity.

Brent crude futures for May climbed by 29 cents, or 0.34%, reaching $86.38 a barrel, while the June contract, which saw more active trading, increased by 28 cents, or 0.33%, to $85.69 as of 0041 GMT. Notably, the May contract is set to expire on Thursday.

Similarly, U.S. West Texas Intermediate (WTI) crude futures for May delivery rose by 41 cents, or 0.50%, reaching $81.76 a barrel.

In the preceding session, oil prices faced downward pressure following unexpected increases in U.S. crude oil and gasoline inventories last week. The Energy Information Administration data revealed a surge in crude imports and subdued gasoline demand, contributing to the inventory buildup. However, it’s worth noting that the crude stock increase was smaller than the build anticipated by the American Petroleum Institute.

Recent disappointing inflation data has reinforced the notion that the U.S. Federal Reserve may refrain from cutting its short-term interest rate target, as stated by a Fed governor on Wednesday. However, the possibility of rate adjustments later in the year has not been ruled out.