Oil steadies after big drop in U.S. stockpiles boosts optimism
BNN Bloomberg
Oil steadied near US$69, with prices tussling between a hawkish rate outlook from central banks and a decline in US crude stockpiles.
West Texas Intermediate rose 0.446 per cent after closing 2.8 per cent higher in the previous session. U.S. Federal Reserve Chair Jerome Powell said at least two interest-rate increases are likely necessary this year to keep bringing inflation lower, the latest central bank commentary suggesting further tightening to come.
U.S. crude inventories shrunk by 9.6 million barrels last week, the largest draw in more than a month, according to the Energy Information Administration. Gasoline demand also surged to the highest since 2021.
The U.S. benchmark is still on track for its first back-to-back quarterly decline since 2019 as China’s lackluster economic recovery and aggressive monetary tightening by the Federal Reserve weighed on prices. Supply has also been plentiful, bolstered by resilient exports from Russia, despite sanctions.
