Oil prices remain stable in early trade

8 Mar 2023 , 08:21 AM

Early on Wednesday in Asian trading, oil prices stabilized as industry data revealed a reduction in U.S. crude oil stocks. The market had fallen the previous session over concerns that more aggressive U.S. interest rate hikes would hurt demand.

April Brent crude futures were up 8 cents to $83.37 per barrel. West Texas Intermediate (WTI) crude for the United States fell 4 cents to $77.54 a barrel.

Data from the American Petroleum Institute showed that U.S. oil stockpiles decreased by around 3.8 million barrels in the week ending March 3, according to market sources, supporting the market on Wednesday.

The decrease went against nine analysts surveyed by Reuters who had predicted a boost in crude stock of 400,000 barrels.

According to news reports, gasoline inventories increased by roughly 1.8 million barrels, and distillate stocks increased by roughly 1.9 million barrels.

With remarks by U.S. Federal Reserve Chair Jerome Powell that the institution will probably need to raise interest rates more than anticipated in reaction to recent positive data, both Brent and WTI plunged more than 3% on Tuesday.

The U.S. dollar, which normally trades inversely with oil, was boosted by Powell’s remarks to a three-month high versus a basket of currencies.

The dollar index increased to its highest level since December 6 at 105.65, up 1.3% on Tuesday. The euro fell to $1.0548, a 1.28% loss.

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