Oil prices rise

11 Jun 2024 , 09:09 AM

Tuesday’s increase in oil prices was limited by a stronger dollar, but it was nonetheless an extension of the previous day’s surge on expectations of increased seasonal fuel demand and possible US crude purchases for its petroleum reserve.

U.S. West Texas Intermediate crude futures increased 31 cents, or 0.4%, to $78.05. Brent crude futures up 28 cents, or 0.3%, to $81.91 per barrel.

Prices rose around 3% to a one-week high on Monday, supported by forecasts of increased fuel use this summer, even as the currency strengthened on predictions that the U.S. Federal Reserve would maintain higher interest rates for an extended period of time.

For clues about when the Fed may begin cutting interest rates, investors are watching the release of the U.S. consumer price index data for May and the end of the Fed’s two-day policy meeting on Wednesday.

The market is also awaiting reports from the U.S. Department of Energy’s statistical arm, the Energy Information Administration, which is expected on Wednesday, and the American Petroleum Institute industry organisation, which is expected later on Tuesday.

A preliminary Reuters poll released on Monday indicated that while product inventories probably increased last week, U.S. crude oil stockpiles were predicted to have decreased.

Additionally, investors are anticipating monthly statistics on oil production and demand from the International Energy Agency (IEA) on Wednesday and the U.S. Energy Information Administration (EIA) and OPEC on Tuesday.

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