Mumbai, 17 May (Commoditiescontrol): Crude oil prices rose in Asian trading on Friday, with Brent crude poised for its first weekly gain in three weeks, driven by signs of improving global demand and slowing inflation in the United States. Brent crude increased by 21 cents, or 0.3%, to $83.48 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.2%, to $79.41 a barrel. For the week, Brent is expected to rise about 1%, and WTI is set to gain 1.4%.
This optimism comes as recent drops in oil and refined product inventories at major global trading hubs signal a resurgence in demand. These developments reverse a previous trend of rising stockpiles that had pressured crude prices in recent weeks. As of Thursday, Brent futures had declined approximately 10% from their peak of $92.18 per barrel on April 12.
In the U.S., oil and fuel inventories fell last week, and Singapore's middle distillate fuel stocks reached a near three-month low. Similarly, gasoline stocks in Europe's Amsterdam-Rotterdam-Antwerp trading hub decreased by 7.5% for the week ending Thursday, according to consultancy Insights Global.
Economic indicators from the U.S. have also contributed to the positive sentiment regarding global oil demand. Data released on Wednesday showed U.S. consumer prices rose less than anticipated in April, raising expectations for lower interest rates. Further, data on Thursday revealed a stabilizing U.S. job market, reinforcing these expectations.
Lower interest rates could potentially weaken the U.S. dollar, making oil cheaper for investors using other currencies and thereby boosting demand.
(By Commoditiescontrol Bureau: 09820130172)
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