At an OPEC+ meeting last Sunday, the alliance announced that it had agreed on a new production target of 40.46 million barrels per day through the end of 2024.
At that time, Saudi Arabia announced the extension of its voluntary reduction with the rest of the members until the end of 2024 as a precautionary measure in an effort to achieve equilibrium in the oil markets.
On the other hand, Reuters projections show that the Federal Reserve will not raise interest rates at its June 13-14 meeting, but a significant minority expects another rate hike at least this year. .
The dollar fell slightly on Thursday and a weaker dollar is boosting demand for oil as crude becomes cheaper for buyers holding other currencies.
price movement
Brent crude rose 48 cents, or 0.6%, to $77.47 a barrel, as of 1127 GMT. U.S. West Texas Intermediate crude rose 56 cents, or 0.8%, to $73.09.
Both benchmarks posted an increase of around 1% in Wednesday’s settlement, supported by Saudi Arabia’s plans to make significant production cuts, but price gains remained limited due to the high US fuel inventories and weak Chinese export data.
The latest data released by the US Energy Information Administration yesterday Wednesday showed US crude oil inventories falling over the past week, while distillate inventories rose.
The Energy Information Administration said gasoline inventories rose 2.7 million barrels during the week, more than analysts expected for an increase of 880,000 barrels.
Distillate inventories rose about 5.1 million barrels during the week, beating analysts’ expectations for a rise of 1.3 million barrels.
The larger-than-expected buildup of fuel inventories in the United States has raised concerns about demand from the world’s biggest consumer of oil, especially as travel is expected to increase further during the Memorial Day holiday.
Meanwhile, U.S. crude inventories fell 451,000 barrels over the week, while analysts had expected a million-barrel increase.
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