The latest U.S. data showed consumer prices rising in April, raising the possibility that the Federal Reserve (the U.S. central bank) will keep interest rates high, which could lead to reduced demand for oil. . Rising global interest rates have weighed on oil prices in recent months as traders worry about a recession.
However, signs of strength in fuel demand have emerged in the United States.
U.S. gasoline inventories fell 3.2 million barrels last week, well above the 1.2 million barrels analysts expected. Data from the US Energy Information Administration on Wednesday also showed a decline in distillate inventories.
And demand for jet fuel in the United States has reached its highest level since December 2019.
Meanwhile, detailed talks have begun on raising the US government’s debt ceiling to $31.4 trillion, with Republicans sticking to their insistence on spending cuts.
The standoff has spooked investors, as Wall Street worries about the risk of an unprecedented default.
Market movements
At 02:46 GMT, Brent crude oil futures rose 39 cents, or 0.5%, to $76.80 a barrel. U.S. crude futures rose 39 cents to $72.96, according to Reuters data.
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