New York: After three consecutive days of decline, oil prices rallied on Thursday, with benchmarks recovering from their lowest levels since mid-March.
By mid-morning, Brent crude futures for July had climbed by 79 cents to $84.23 a barrel, a 0.95% increase, while U.S. West Texas Intermediate (WTI) for June rose by 69 cents to $79.69 a barrel, marking an 0.87% gain.
This rebound follows a sharp decline of more than 3% on Wednesday, which was influenced by the U.S. Federal Reserve’s decision to maintain interest rates, coupled with warnings about persistent inflation potentially stifling economic growth and dampening oil demand for the remainder of the year.
Contributing to the pressure on crude prices was an unexpected surge in U.S. crude inventories, as reported by the Energy Information Administration (EIA). The data revealed a significant increase, with stocks reaching their highest point since June, up by 7.3 million barrels to 460.9 million, starkly contrasting with the anticipated 1.1 million barrel draw forecasted by analysts in a Reuters poll.
Prices found additional support from geopolitical developments, including ceasefire discussions related to the ongoing conflict in Gaza, which analysts believe could stabilize regional tensions. Moreover, the dip in oil prices might prompt the U.S. government to consider replenishing its strategic reserves.
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