Mumbai, 1 Feb (Commoditiescontrol): Crude oil prices rose in early trade on Thursday, benefiting from the U.S. Federal Reserve signalling rate cuts in the near future and as China unveiled new support measures for its embattled property market.
Brent crude futures rose 46 cents, or 0.6%, to $81.03 a barrel and U.S. West Texas Intermediate crude futures gained 47 cents, or 0.6%, to $76.33, after falling by more than $2 a barrel in the previous session.
Federal Reserve Chair Jerome Powell said on Wednesday that interest rates had peaked and would move lower in coming months, with inflation continuing to fall and an expectation of sustained job and economic growth.
Reinforcing views that the central bank could start cutting interest rates by June, data showed U.S. labour costs rose less than expected in the fourth quarter and the annual increase was the smallest in two years. Lower rates and economic growth are supportive for oil demand.
China, the world's second biggest economy, unveiled new property support measures amid concerns about the fallout from the liquidation of developer Evergrande and as the country ended last year with the worst declines in new home prices in nearly nine years.
Analysts at JPMorgan said they expected China to remain the single largest contributor to global oil demand growth this year, forecasting oil demand there would grow by 530,000 barrels per day in 2024, following a 1.2 million bpd surge last year.
In the Middle East, worries about attacks by Yemen-based Houthi forces on shipping in the Red Sea are now driving up costs and disrupting global oil trading.
(By Commoditiescontrol Bureau: 09820130172)
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