Oil prices rose on Thursday after falling in the previous session, supported by a decline in U.S. crude and gasoline inventories after signs that the Federal Reserve may keep interest rates high for longer, weighing on the outlook for future fuel demand.
By 0155 GMT, Brent crude futures for May settlement were up 0.6 percent, or 52 cents, at $86.47 a barrel, after falling 1.6 percent on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures for May delivery rose 0.5 percent, or 45 cents, to $81.72 a barrel after falling 1.6 percent in the previous session. The April contract expired on Wednesday, down 2.1 percent at $81.68.
The U.S. Energy Information Administration said on Wednesday that crude inventories in the United States, the world’s largest oil consumer, fell for a second week. Stockpiles fell unexpectedly by 2 million barrels to 445 million barrels in the week to March 15, compared with analysts’ expectations in a Reuters poll for an increase of 13,000 barrels.
Stockpiles fell as exports rose and refineries continued to ramp up activity. Gasoline stocks fell for a seventh week by 3.3 million barrels to 230.8 million, reflecting strong demand for the fuel.
The inventory figures gave some support to the market after mixed expectations from Federal Reserve policymakers about interest rate cuts this year weighed on prices earlier.
The U.S. Federal Reserve on Wednesday held interest rates steady in a range of 5.25 to 5.50 percent, but policymakers barely kept their forecast for three rate cuts this year, meaning rates could stay higher for longer.
Staying high for longer could mean lower economic growth, which could impact future fuel demand.
