Abstract:Oil prices edged up on Thursday, extending gains from the previous session, buoyed by lower crude inventories and higher gasoline demand in the United States.
Brent crude futures for September rose 40 cents, or 0.4%, to $107.02 a barrel by 0010 GMT, after gaining $2.22 on Wednesday.
U.S. West Texas Intermediate crude (WTI) was at $97.78 a barrel, up 52 cents, or 0.5%, after rising $2.28 in the previous session.
U.S. crude oil stockpiles fell by 4.5 million barrels last week, while U.S. gasoline demand rebounded by 8.5% week on week, according to data from the Energy Information Administration.
Exports also climbed to a record high as WTI traded at a steep discount to Brent, making purchases of U.S. crude grades more attractive to foreign buyers.
On the demand side, the U.S. Federal Reserve raised its benchmark overnight interest rate by three-quarters of a percentage point, in line with expectations, to cool inflation, while the dollar fell on hopes for a slower hiking path.
The weaker dollar also helped crude prices notch some gains as it makes oil, priced in dollars, cheaper for buyers in other countries to purchase.
Prices also found support as the Group of Seven richest economies aim to have a price-capping mechanism on Russian oil exports in place by Dec. 5, a senior G7 official said on Wednesday.
U.S. crude oil production growth could also be limited by the availability of fracking equipment and crews, as well as capital constraints, executives said this week.
In the meantime, Russia has cut gas supply via Nord Stream 1 – its main gas link to Europe – to just 20% of capacity. That could lead to switching to crude from gas and prop up prices for oil in the short term, analysts said.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
In the dynamic realm of foreign exchange trading, the lack of transparency and accountability within forex prop firms in the UK and Europe poses a significant risk to unsuspecting traders. Behind the allure of potential profits lies a murky landscape where opacity reigns, making it challenging for traders to discern legitimate firms from fraudulent operators.
In the complex world of foreign exchange trading, the allure of substantial profits often leads traders to seek out opportunities with forex prop firms. These entities, which provide capital and leverage to traders in exchange for a share of profits, can offer an enticing pathway to financial success. However, beneath the surface lies a shadowy realm where regulatory loopholes and lax oversight create fertile ground for scams and fraudulent activities.
James Glyde introduces PipFarm, based in Singapore, using cTrader to navigate the retail prop trading industry changes driven by MetaQuotes' strategy adjustment
In the dynamic world of financial markets, where opportunities abound, the notion of trading being a scam often arises, fuelled by misconceptions and unfortunate experiences. However, is this really the truth?