SINGAPORE: According to Reuters, oil prices decreased on Thursday as strong US economic data suggested that borrowing costs would remain high for an extended period, potentially hurting demand.
As of 9:30 a.m, Saudi time, Brent futures had dropped 26 cents, or 0.3 percent, to $83.34 a barrel ahead of US crude oil stockpile data expected later in the day. Meanwhile, US West Texas Intermediate crude had dropped 23 cents, or 0.3 percent, to $79.00.
Both benchmarks are expected to lose money each month; WTI was expected to fall more than 3 percent, while Brent futures are expected to fall more than 5 percent from the previous month. The larger-than-expected decline in oil prices has been superseded by some downward pressure on oil prices due to the overall risk-off environment.
Rising global oil inventories through April due to soft fuel demand may strengthen the case for OPEC+ producers, which include the Organization of the Petroleum Exporting Countries and allies including Russia, to keep supply cuts in place when they meet on June 2, OPEC+ delegates and analysts say.Oil markets have been under pressure over expectations the Federal Reserve will keep interest rates higher for longer, with Brent settling at its lowest in more than three months on May 23.
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