|
Brent crude futures for May were up 40 cents, or 0.5%, at $86.49
a barrel while the more actively traded June contract rose 36
cents, or 0.4%, to $85.77 at 0757 GMT. The May contract expires
on Thursday.
U.S. West Texas Intermediate (WTI) crude futures for May
delivery were up 44 cents, or 0.5%, to $81.79 a barrel.
Both benchmarks were on track to finish higher for a third
consecutive month, and were up about 4.5% from last month.
In the prior session, oil prices were pressured following last
week's unexpected rise in U.S. crude oil and gasoline
inventories, driven by a rise in crude imports and sluggish
gasoline demand, according to Energy Information Administration
data.
However, the crude stock increase was smaller than the build
projected by the American Petroleum Institute.
"We ... expect U.S. inventories to rise less than normal in
reflection of a global oil market in a slight deficit," Bjarne
Schieldrop, chief commodities analyst at SEB Research, said in a
note.
"This will likely hand support to the Brent crude oil price
going forward."
Also providing support to prices were U.S. refinery utilisation
rates, which rose 0.9 percentage points last week.
Recent disappointing inflation data affirms the case for the
U.S. Federal Reserve to hold off on cutting its short-term
interest rate target, a Fed governor said on Wednesday, but he
did not rule out trimming rates later in the year.
"The market is converging on a June start to cuts for both the
Fed and the European Central Bank," JPMorgan analysts said in a
note. Lower interest rates support oil demand.
Investors will watch for cues from a meeting next week of the
Joint Monitoring Ministerial Committee of producer group the
Organisation of Petroleum Exporting Countries (OPEC) amid supply
concerns over geopolitical risks.
OPEC+ is unlikely to make any oil output policy changes until a
full ministerial gathering in June, but any sign of members not
sticking to current production quotas will be viewed as bearish,
analysts at ANZ Research said.
"The lack of a ceasefire deal between Israel and Hamas continues
to keep tension in the Middle East elevated," ANZ said.
(Reporting by Katya Golubkova in Tokyo and Sudarshan Varadhan in
Singapore; Editing by Clarence Fernandez)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
