Crude oil futures climbed on Thursday, buoyed by easing inflation data. The consumer price index dropped 0.1% in June, reducing the annual rate to 3%, which raised hopes for Federal Reserve interest rate cuts in September.
Lower interest rates typically boost economic growth, potentially increasing oil demand. Meanwhile, mixed signals on global oil demand emerged, with the International Energy Agency forecasting slower growth compared to OPEC's more optimistic outlook.
West Texas Intermediate and Brent crude both saw price increases, while natural gas prices fell. Overall, the oil future looks fairly positive with potential increased demand.
Finsum: It is potentially shaping up to be a strong fall for energy prices if we see a rate hike.
- energy
- oil
- OPEC
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