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20/06/24
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Brent Price Lifts Toward $86 As Rate Cut Hopes Buoyed by Easing US Jobs Market
On Thursday, crude futures reached a 7-week peak as new data on an easing U.S. jobs market added to expectations that the Federal Reserve may still trim interest rates this year.
Prices were also fueled by concerns of escalating Middle Eastern conflict, with worries of supply disruption in the oil-producing region.
Brent crude futures were 78 cents, or 0.9% higher, at $85.85 per barrel, after earlier hitting $85.89, a high last seen on May 1.
U.S. West Texas Intermediate futures for delivery July, which will expire on Thursday, rose by 70 cents, or 0.9%, to $82.27 per barrel.
On Wednesday, there was no settlement of WTI due to a public holiday in the U.S. The more active August contract was 60 cents higher at $81.31.
Last week, the number of Americans filing initial claims for unemployment benefits dropped.
Labor market momentum has waned together with the overall economy as the Fed attempts to curb inflation. With that pressure now declining, a rate cut this year is still possible.
That may boost oil prices, which have this year been dragged lower by lackluster demand globally. A U.S. rate cut would make borrowing less expensive in the biggest economy in the world, galvanizing the demand for oil.
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