Written by Lila Carney
NEW YORK (Reuters) – Oil futures edged higher on Thursday on a stabilizing U.S. job market and weaker-than-expected inflation data, boosting hopes that the Federal Reserve will start cutting interest rates in the fall. Ta.
Brent crude oil futures rose 32 cents to $83.07 a barrel by 1 p.m. EDT (1 p.m. Japan time). U.S. West Texas Intermediate crude oil (WTI) rose 44 cents to $79.07.
The number of Americans filing new claims for unemployment benefits fell by 10,000 last week to a seasonally adjusted 222,000, the Labor Department said, pointing to both underlying strength and stability in the labor market.
“Even if jobless claims were low, the report was weak enough to allow the Fed to step in and cut rates,” said John Kilduff of Again Capital. “The positive employment trends, even if lackluster, portend a solid outlook for gasoline demand.''
Meanwhile, U.S. consumer prices rose in April as financial markets rose in hopes of a September interest rate cut by the Federal Reserve, which could ease dollar strength and make oil more affordable for holders of other currencies. The rate of increase in consumer prices was lower than expected.
Brent crude oil hit an intraday low of $81.05 on Wednesday, the lowest for last month's futures since February 26, as mixed U.S. crude inventory data kept oil prices in check. As a result, the stock rebounded by about 0.5% on the day.
U.S. crude oil, gasoline and distillate inventories declined, reflecting both increased refining activity and fuel demand, according to Energy Information Administration (EIA) data.
Crude oil inventories for the week ending May 10 fell by 2.5 million barrels to 457 million barrels, compared with the consensus estimate of 543,000 barrels by analysts polled by Reuters, the EIA said.
But gasoline demand remained below 9 million barrels a day for the sixth week in a row, below typical levels heading into the summer driving season.
“This increase in production is likely to continue into early next month and will be in direct conflict with continued weak product demand that shows no signs of improving,” said Jim Ritterbusch of Ritterbusch & Associates. Probably.''
In the Middle East, Israeli tanks entered the center of Jabalia in northern Gaza on Thursday, but in the south Israeli forces shelled Rafah without advancing, Palestinian residents and militants said.
Ceasefire talks brokered by Qatar and Egypt have stalled, with Hamas demanding an end to attacks, which Israel has refused until Hamas is wiped out.
(Additional reporting by Noah Browning and Katya Golubkova in Tokyo and Emily Chow in Singapore; Editing by David Goodman, Franklin Paul and Susan Fenton)