Oil Steadies With US Growth Outlook, Stockpile Levels in Focus
Oil steadied, with the outlook for US growth in focus after the Federal Reserve left rates unchanged, while data showed robust fuel consumption.
Brent crude traded near $71 a barrel after a modest advance on Wednesday, with West Texas Intermediate above $67. Fed Chair Jerome Powell acknowledged the high degree of uncertainty from President Donald Trump’s policy changes, including trade, and new projections showed officials marked down forecasts for growth this year, while boosting inflation estimates.
US inventories of gasoline, meanwhile, fell last week to the lowest since the start of the year, while distillates — a category that includes diesel — also sank, allaying concerns about consumption. Crude stockpiles rose less than flagged in an industry report, while levels dropped at the Cushing, Oklahoma, hub.
Crude remains markedly lower than a high in January, as a confluence of bearish factors pressure prices. While the escalating trade war threatens to hit energy demand as tariffs and counter levies are imposed, OPEC and its allies are set to raise output from April, contributing to weaker global balances.
Brent for May settlement rose 0.2% to $70.93 a barrel at 8:21 a.m. in Singapore.
WTI for April delivery, which expires Thursday, gained 0.2% to $67.31 a barrel.
The more-active May contract advanced 0.2% to $67.05.
Source: Bloomberg
