Oil prices rose in early Asian trading on Wednesday, supported by expectations of strong global demand, including from the United States, the world's largest crude consumer, and as relatively steady U.S. inflation did not dampen expectations that the Federal Reserve could start cutting interest rates soon.
price movement
Brent crude futures for May delivery rose 50 cents, or 0.64 percent, to $82.43 a barrel by 0437 GMT. U.S. West Texas Intermediate crude for April rose 51 cents, or 0.66 percent, to $78.07.
OPEC stuck to its forecast for strong growth in global oil demand at 2.25 million barrels per day in 2024 and 1.85 million in 2025, and raised its forecast for economic growth this year.
In another sign of strong demand, U.S. crude oil and fuel inventories fell last week, according to figures from the American Petroleum Institute.
Analysts still believe the U.S. central bank could start cutting interest rates in the summer, even though U.S. consumer prices rose sharply in February on higher gasoline and housing costs, suggesting some stabilization in inflation. Lower interest rates support demand for oil.
Oil prices came under pressure in the previous session after the U.S. Energy Information Administration raised its forecast for domestic oil production. But declines were limited by expectations that OPEC+ production cuts will continue to slow global oil supply growth and by a recent wave of drone attacks on sites in Russia, including refineries.
