2023-07-12 20:38:11
Oil prices rose today, Wednesday, amid expectations that the next time the US central bank raises interest rates will be the last.
Brent crude recorded $80 a barrel, for the first time since last May
Oil prices rose today, Wednesday, as Brent crude hit $80 a barrel for the first time since last May, following US inflation data boosted hopes that the Federal Reserve may raise interest rates fewer times in the future.
Data released today showed that US consumer prices rose slightly over the past month, marking the smallest annual increase in more than two years.
While the markets expect to raise interest rates once more, oil dealers hope that this will be the last time, as raising interest rates slows economic growth and reduces the volume of demand for oil.
Brent crude futures rose 0.9%, or 71 cents, to settle at $80.11 a barrel.
Likewise, West Texas crude futures rose by 1.2%, equivalent to 92 cents, to $75.75 a barrel.
The International Energy Agency said that the oil market is expected to witness a shortage in supply during the second half of 2023, and attributed this to the strength of demand from China and developing countries, in addition to the supply cuts announced by Saudi Arabia, Russia and other countries.
New forecasts are expected from the agency this week.
Saudi Arabia pledged last week to extend production cuts of $1 million per barrel until August, while Russia will reduce exports by 500,000 barrels per day.
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