Oil prices rose during early Thursday trading, in light of expectations that the United States will begin buying crude to refill its oil reserves after prices fell to the lowest level in seven weeks, coinciding with hopes for reaching a ceasefire in the Gaza Strip, rising American stocks, and a state of uncertainty. Regarding interest rate cuts in the United States.
Price action
After three days of losses, Brent crude futures for July delivery rose 21 cents, or 0.3 percent, to $83.65 a barrel by 0026 GMT. US West Texas Intermediate crude for June delivery also rose 22 cents, or 0.3 percent, to $79.22 a barrel.
The two crude oil standards fell by more than three percent yesterday, Wednesday, to the lowest level in 7 weeks.
“The oil market received support from speculation that if WTI falls below $79, the United States will move to fill its strategic reserves,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
The United States aims to refill its strategic oil reserve after a historic withdrawal from emergency stocks in 2022, and is looking to buy back oil at a price of $79 per barrel or less.
“If a ceasefire is agreed upon, even if temporarily, in Gaza, market attention will likely shift to oil demand in the United States as the driving season approaches,” Kikukawa said.
Expectations are increasing in the Middle East that a ceasefire agreement between Israel and Hamas may be on the horizon amid a new effort led by Egypt.
Despite this, Israeli Prime Minister Benjamin Netanyahu vows to go ahead with the attack that he has been threatening for a long time on the city of Rafah in the southern Gaza Strip, despite the American position and the United Nations warning that this will lead to a “tragedy.”
The US Energy Information Administration said that crude inventories rose by 7.3 million barrels to 460.9 million barrels in the week ending April 26, compared to analysts’ expectations in a Reuters poll of a decline of 1.1 million barrels.
The Energy Information Administration said that crude inventories reached their highest levels since June.
Meanwhile, the Federal Reserve (the US central bank) fixed interest rates yesterday, Wednesday.
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