BENGALURU, March 23 (Reuters) – Oil costs edged larger on Thursday days after hitting their lowest since late 2021, supported by rising gasoline costs in the USA and a weaker greenback which fed gas demand hopes.
Brent crude futures rose 15 cents, or 0.2%, to $76.84 a barrel by midday EDT (1600 GMT), whereas the U.S. West Texas Intermediate crude futures had been up by 6 cents, or 0.1%, to $70.96 a barrel.
The greenback index traded at its lowest since Feb. 3, a day after the Federal Reserve hinted it was nearing a pause in its curiosity rate-hike cycle. A weaker buck makes dollar-denominated oil extra engaging to holders of foreign currency echange, lifting demand.
Federal Reserve policymakers consider beating again inflation could require only one extra interest-rate hike this yr however much less easing subsequent yr than most thought could be acceptable simply three months in the past.
Additional help for crude oil got here from RBOB gasoline futures buying and selling at a 10-day excessive on Thursday after the U.S. Power Info Administration stated stockpiles of the product fell by probably the most final week since September 2021.
Greater gasoline demand will encourage refiners to make use of extra crude oil to show it into the highway transportation gas, Mizuho analyst Robert Yawger stated.
“That enormous draw of 6 million barrels in EIA's report has left a big effect available on the market because the gasoline state of affairs is trying a bit tight right here,” Yawger stated.
Additionally supportive, Goldman Sachs stated on Thursday that demand from China, the world's greatest oil importer, continued to surge throughout the commodity advanced, with oil demand topping 16 million barrels per day.
The financial institution forecast Brent to achieve $97 a barrel within the second quarter of 2024.
Reporting by Shariq Khan, further reporting by Shadia Nasralla, Jeslyn Lerh
Enhancing by Mark Potter and David Gregorio
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