Brent crude oil futures At 0033 GMT, U.S. West Texas Intermediate (WTI) crude futures were up 4 cents at $73.05 a barrel.
Both benchmark indexes rose for the first time in five sessions on Thursday on expectations that the United States… Federal Reserve would soon reduce interest rates, which would help ease some concerns about the Economic outlook of the largest consumer of oil.
Minutes from the Federal Reserve’s July meeting released Wednesday showed that most Fed officials thought the central bank was on track for a interest rate cut next month.
Brent futures, however, were on track to post a weekly drop of around 3%, while WTI was on track to lose nearly 5%. Both benchmarks had hit their lowest level since early January earlier in the week after the U.S. government sharply revised down its estimate of jobs added by employers in the country this year through March. That raised concerns about a potential U.S. recession that would hurt demand in the top oil-consuming country. Recent data from China, the top oil importer, has also pointed to a struggling economy and slowing demand for oil from refineries there.
“Bullish fundamentals continue to play a secondary role to weakening sentiment, and the oil market is unable to shake off its recent bearish tendencies,” analysts at consultancy FGE said in a note to clients.
They added that momentum has been renewed for a ceasefire in Gaza between Israel and Hamas helped ease supply concerns and in turn weighed on oil prices this week.
U.S. and Israeli delegations began a new round of meetings in Cairo on Thursday to resolve differences over a proposed truce.
Some analysts say there are signs that oil could find support in the coming weeks. Global oil inventories have declined over the past two months, indicating that supply growth is lagging behind demand, UBS analysts said on Thursday.
That should help prices recover in the coming months, pushing Brent crude back into the $85 to $90 range, they said.
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