Oil prices drop on weaker US fuel demand, Gaza ceasefire report; Brent rebounds to $85/bbl

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maintained its key interest rates at 5.25-5.50 per cent for the fifth straight meeting. Brent crude futures for May were down 68 cents, or 0.8 per cent, to $85.27 per barrel after dropping by 1.6 per cent on Wednesday. US West Texas Intermediate futures for May were down 69 cents, or 0.9 per cent, to $80.58 per barrel after a fall of about 1.8 per cent in the previous session, according to Reuters.

Coming to domestic prices, crude oil futures were trading 0.33 per cent lower at ₹6,726 per barrel on the multi commodity exchange (MCX). -Crude inventories in the US, the world's biggest oil consumer, unexpectedly declined last week, the US Energy Information Administration (EIA) reported on Wednesday. Though gasoline inventories fell for a seventh week, down 3.3 million barrels to 230.8 million, gasoline product supplied, a proxy for product demand, slipped below nine million barrels.

Also Read: US Fed keeps benchmark rates steady at 23-year high-mark, projects 3 rate cuts in 2024: 5 key highlights -Oil prices also were pressured by confirmation that the US drafted a UN resolution calling for a ceasefire that would allow the release of 40 Israeli hostages in return for hundreds of Palestinians detained in Israeli jails. -Investors also took a note from the US central bank, which held interest rates at a 23-year high level on Wednesday, but kept to an outlook for three rate cuts this year. Lower rates could boost economic growth, in good news for oil sales.