Oil prices rose on the market on Thursday as a result of US data showing a decrease in crude stocks, which pointed to an improvement in the nation’s oil consumption. International benchmark Brent crude closed at $78.04 per barrel, up $0.41% over the previous trading session’s closing price of $77.72 per barrel.
West Texas Intermediate (WTI), the American benchmark, was trading at $74.55 a barrel concurrently, up 0.34% from the session’s previous closing of $74.30 per barrel.
The Energy Information Administration reported on Wednesday that oil stocks decreased by 5.1 million barrels, to 460.9 million barrels, in the week ending April 21. According to the American Petroleum Institute, 6.08 million barrels would be drawn. Demand is increasing despite the lower-than-expected decrease in inventories.
The US dollar index dropped, supporting prices even further by lowering the cost of crude oil for overseas customers.
The US dollar index, which gauges how much the dollar is worth in relation to a variety of other currencies such as the British pound, Canadian dollar, Swedish krona, and Swiss franc, dropped to 101.095 on Thursday, a 0.11% decrease from Wednesday’s closing price of 101.205. Price hikes were nevertheless constrained by continued recessionary worries brought on by subpar global economic statistics.
Later in the day, more information is anticipated by investors to provide further light on the veracity of recession worries. The first-quarter US GDP data, as well as the Federal Reserve’s personal consumption expenditures price index, are expected to show a slowdown in economic growth.
