Oil Gains Toward $75 With Markets Rallying After Fed Cuts Rates
Oil advanced as a risk-on tone swept across wider financial markets following the steep interest-rate cut by the Federal Reserve.
Brent futures climbed toward $75 a barrel after closing little changed on Wednesday, while West Texas Intermediate was above $71. European stock futures gained alongside Asian equities as the Fed's move reinforced expectations that the US economy will avoid a downturn.
Brent is still on track for a quarterly loss on concerns over China's economic slowdown and ample supply. A measure of US gasoline demand fell further below 9 million barrels while jet fuel consumption ebbed for a third straight week, according to government data, adding to bearish headwinds.
Shrinking US inventories could underpin further price gains. Crude stockpiles at the key storage hub at Cushing, Oklahoma, are significantly lower than the five-year seasonal average and close to what's considered "tank bottom" levels, according to EIA data.
Brent for November settlement rose 1.2% to $74.54 a barrel at 10:13 a.m. in London. WTI for October delivery climbed 1% to $71.65 a barrel.
Source: Bloomberg
