Mumbai, 21 Jun (Commoditiescontrol): Crude oil futures edged lower in early trade on Friday, influenced by the potential for prolonged higher interest rates in Asia and the United States. However, a decrease in U.S. oil inventories kept prices from sliding further.
Brent futures for August delivery fell by 11 cents to $85.60 per barrel, while U.S. crude dipped 9 cents to $81.20 per barrel.
Data released on Friday showed Japan's core consumer prices increased by 2.5% in the past year, up from the previous month. This inflation data suggests that Japan's central bank is likely to continue raising interest rates in the coming months.
In the United States, new unemployment claims fell for the week ending June 14, indicating persistent strength in the job market. This robust employment data increases the likelihood that the Federal Reserve will maintain higher interest rates for a longer period.
Higher interest rates typically dampen economic activity, which in turn can reduce oil demand.
Supporting oil prices, the Energy Information Administration (EIA) reported a drawdown in U.S. crude stockpiles by 2.5 million barrels for the week ending June 14, bringing total inventories to 457.1 million barrels. This was slightly more than analysts' expectations of a 2.2 million-barrel decrease.
Gasoline inventories also saw a significant decline, falling by 2.3 million barrels to 231.2 million barrels, compared to forecasts for a 600,000-barrel increase.
While the drawdown in U.S. crude and gasoline inventories provided some support to prices, the overarching concern about higher interest rates continued to weigh on market sentiment.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
