Oil up ahead of US inflation data, set for third weekly gain

By Arunima Kumar

BENGALURU (Reuters) -Oil prices rose on Friday and were on course for a third straight weekly jump buoyed by growing expectations that the U.S. Federal Reserve will soon start cutting interest rates and U.S. inflation data due later in the day.

Brent crude futures for August settlement , which expire on Friday, were up 54 cents, or 0.63% to $86.93 a barrel by 0845 GMT. The more liquid September Brent contract was up 0.7% at $85.87 a barrel.

U.S. West Texas Intermediate crude futures for August delivery rose 61 cents, or 0.75%, to $82.35 a barrel.

Brent and WTI futures have gained nearly 2% this week, with both benchmarks on track for gains of slightly more than 6% month on month.

U.S. personal consumption inflation data, the Fed’s preferred measure of inflation, is due to be released at 1230 GMT.

“With the rates market looking for two rate cuts from the Fed by the end of this year, the price data will serve as validation for whether expectations are being overly dovish,” said Yeap Jun Rong, a market strategist with IG.

Growing expectations of an imminent Fed easing cycle have sparked a risk rally across stock markets. Traders are now pricing in a 64% chance of a first Fed cut in September, up from 50% a month ago, according to the CME FedWatch tool.

Easing interest rates could be a boon for oil as it could increase demand from consumers.

A recovery in physical refining margins also buoyed markets, with the Singapore complex refining margins on average $1 higher in June than in May at around $3.60 a barrel.

Capping gains was caution regarding fluctuations in the U.S. dollar, which is at a two-month high, and political uncertainty in France.

This post is originally published on INVESTING.

  • Related Posts

    3 EM currency trades to consider

    Investing.com — With the U.S. presidential election concluding, Alpine Macro (BCBA:BMAm) has suggested three emerging market (EM) currency trades, especially if the Trump administration ushers in heightened protectionism.  The key pairs…

    California approves tighter rules for low carbon fuels policy

    (Reuters) -California regulators voted on Friday to toughen a policy aimed at boosting low-carbon fuels to slash greenhouse gas emissions from the transportation sector and meet state climate change goals,…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Profit Taking in Trading: An Approach to Conquer Fear and Greed

    • November 9, 2024
    Profit Taking in Trading: An Approach to Conquer Fear and Greed

    🎯 Stop System Hopping & Start Winning: Unleash Your Inner Trading Edge!

    • November 9, 2024
    🎯 Stop System Hopping & Start Winning: Unleash Your Inner Trading Edge!

    3 EM currency trades to consider

    • November 9, 2024
    3 EM currency trades to consider

    California approves tighter rules for low carbon fuels policy

    • November 9, 2024
    California approves tighter rules for low carbon fuels policy

    Explainer-Who are the key voices at the COP29 climate summit in Baku?

    • November 9, 2024
    Explainer-Who are the key voices at the COP29 climate summit in Baku?

    The Week’s Snapshot: Donald Trump’s Victory and Crypto, ASIC to Close 95 Firms, and More

    • November 9, 2024
    The Week’s Snapshot: Donald Trump’s Victory and Crypto, ASIC to Close 95 Firms, and More