Oil rallies after a reading on inflation expectations eased
BNN Bloomberg
Oil jumped after a reading on U.S. consumer inflation expectations was revised lower, adding optimism to crude’s demand outlook.
Oil jumped after a reading on US consumer inflation expectations was revised lower, adding optimism to crude’s demand outlook.
West Texas Intermediate traded above US$108 a barrel, erasing much of this week’s loss. Friday’s rally comes as the University of Michigan’s final June reading of longer-term consumer inflation expectations settled back from an initially reported 14-year high, potentially reducing the urgency for steeper Federal Reserve interest-rate hikes.
“Crude prices were on a roller coaster ride this morning rallying after a key economic survey showed modest improvement with inflation expectations,” said Ed Moya, senior market analyst at Oanda. “Wall Street remains optimistic that inflation will improve over the next year and that is good news for risky assets, especially commodities.
