Oil rises following the decline in US inflation and the dollar
Thursday – 22 Ramadan 1444 A.H. – April 13, 2023 A.D. Issue number [
16207]
A three-dimensional oil rig with a dollar bill next to it (Archyde.com)
London: «Asharq Al-Awsat»
Oil prices rose during trading yesterday, Wednesday, following US inflation rates fell to 5 percent on an annual basis in March, recording their lowest level in nearly two years, in addition to the decline in the dollar.
Brent crude rose 1.3 percent to $86.80 a barrel by 16:00 GMT, and US West Texas Intermediate crude rose 1.4 percent to $82.68 a barrel.
Inflation in the United States slowed to 5 percent on an annual basis in March, its lowest level in nearly two years, and thus commodity prices fell to their lowest levels since May 2021, compared to 6 percent on an annual basis in February, according to Consumer price index released by the Ministry of Labor Wednesday. This reinforces the US central bank’s halt to the rate hike series.
US oil inventories rose during the past week, for the third week in a row, according to the US Energy Information Administration, by 600 thousand barrels, compared to the expectations of 8 analysts polled by Archyde.com, for a decline of 600 thousand barrels. It should be noted here that the United States began withdrawing from its strategic reserves of crude oil from this April, to sell regarding 26 million barrels until the end of next June.
Strategic reserves of oil stocks fell by 1.6 million barrels last week, bringing the total to 369 million barrels. Prices rose regarding 2 percent on Tuesday amid hopes that the Federal Reserve (the US central bank) will slow down the pace of monetary tightening following the release of US consumer price data. Philadelphia Fed President Patrick Harker said he feels the US central bank will soon be satisfied with raising interest rates.
America
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