Singapore, April 12 (BNA): Oil prices rose on Wednesday as the market awaited US inflation data later in the day that is likely to influence the Fed’s rate hike policy in the future.
Brent crude rose 19 cents, or 0.2%, to $85.80 a barrel by 0615 GMT, while US West Texas Intermediate crude rose 13 cents, or 0.2%, to $81.66 a barrel, Reuters reported.
Prices rose about 2% on Tuesday on optimism that the Federal Reserve is close to ending its rate-raising cycle, making dollar-denominated oil cheaper for buyers holding other currencies.
US CPI is expected to show March core inflation rising by 0.4% m/m and 5.6% y/y.
Data from the American Petroleum Institute (API) showed that crude stocks rose by about 380,000 barrels in the week ending April 7, according to sources, compared to the expectations of eight analysts polled by Reuters for a drop of 600,000 barrels.
Gasoline stocks rose by about 450,000 barrels, according to the American Petroleum Institute report, while analysts had expected a decline of 1.6 million barrels.
The US government will release its inventory data at 10:30 AM (1430 GMT) on Wednesday.
The International Monetary Fund on Tuesday cut its global growth forecast for 2023, citing the impact of higher interest rates.
The US Energy Information Administration on Tuesday cut its forecast for OPEC countries’ oil production by 0.5 million barrels per day (bpd) for the rest of 2023 and lowered its forecast for global oil demand growth for 2023 by 40,000 bpd.
ZHB