Market Analysis

Oil prices increased on Thursday due to the possibility of the U.S. purchasing crude for its petroleum reserve. This followed a dip to a seven-week low driven by hopes for an Israel-Gaza ceasefire, uncertainty around U.S. interest rate adjustments, and rising oil supplies.

Brent crude futures for July rose by 0.3% to $83.65 a barrel, while U.S. West Texas Intermediate (WTI) crude for June climbed 0.3% to $79.22 a barrel, rebounding from a more than 3% decline the previous day.

There is speculation that the U.S. might bolster its Strategic Petroleum Reserve (SPR) if WTI drops below $79. Additionally, market focus may shift to U.S. oil demand with the upcoming driving season if a ceasefire in Gaza materializes.

Efforts for a Gaza ceasefire have intensified, although Israeli Prime Minister Netanyahu remains committed to an assault on Rafah despite opposition, potentially impacting oil market dynamics.

The U.S. Energy Information Administration reported a significant increase in crude inventories, with stocks reaching their highest level since June, potentially influencing oil prices.

Furthermore, the U.S. Federal Reserve maintained interest rates but hinted at potential future cuts, citing concerns over subdued inflation. Delays in rate adjustments could impact economic growth and oil demand.

Paraphrasing text from "Reuters" all rights reserved by the original author.