Though worries about weaker global demand limited gains, oil prices increased on Thursday, helped by expectations that prospective US interest rate cuts will stimulate economic activity and fuel consumption, according to Reuters.
By 8:25 a.m. Saudi time, Brent oil futures gained 19 cents, or 0.24 percent, to $79.95 a barrel, regaining some of the losses from the previous day. The price of a barrel of US West Texas Intermediate crude futures jumped by 23 cents, or 0.3 percent.
As concerns about a broader Middle East conflict subsided, US crude stocks unexpectedly increased on Wednesday, causing both benchmarks to drop more than 1%.
In July, US consumer prices increased somewhat, and for the first time in almost three and a half years, the annual growth in inflation fell to below 3 percent, supporting predictions that the Federal Reserve will lower interest rates the following month.
According to Yuki Takashima, an analyst at Nomura Securities, “we saw a correction in Asia trade as the oil market was oversold on Wednesday.” She also mentioned that investors are placing bets that the Fed may begin lowering interest rates as early as next month.
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