Oil prices rise 2% on smaller build in US crude stocks as Fed signals rate cuts in 2024; Brent nears $84/bbl
Also Read: Explained | Why did OPEC+ members extend oil output cuts to mid-2024 Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a March 19 expiry, was last trading 2.42 per cent higher at ₹6,638 per bbl, having swung between ₹6,484 and ₹6,671 per bbl during the session, against a previous close of ₹6,481 per barrel. -The Organisation of Petroleum Exporting Countries and its allies (OPEC+) led by Saudi Arabia and Russia agreed earlier this week to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter or mid-2024.
-The US Energy Information Administration (EIA) said energy firms added a smaller-than-expected 1.4 million barrels of crude into stockpiles during the week ended March 1, while distillate and gasoline inventories fell by much more than expected. -For crude stocks, that compares with the 2.1-million barrel build analysts forecast in a Reuters poll and the 0.4-million barrel build shown in data from the American Petroleum Institute (API), an industry group.
-US Federal Reserve Chair Jerome Powell said the central bank still expects to reduce its benchmark interest rate later this year, though policymakers still needed "greater confidence" in inflation's continued decline. -Investors see signs of a Fed cut as positive for the economy and oil demand.
US private payrolls increased slightly less than expected in February, data showed, bolstering the case for rate cuts. Also Read: US Fed signals rate cuts in 2024; Powell says progress towards 2% inflation target ‘not assured’ Crude oil experienced significant price volatility, extending its decline amid concerns over Chinese demand.
However, a decrease in US oil stocks helped support prices. The market
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