Oil prices rose on Thursday, marking a second consecutive day of gains and moving away from two-week lows as the dollar experienced significant losses in the forex market.
The increase in prices was further supported by a decline in US commercial crude stocks last week, indicating strong demand in the US.
Prices:
- US crude prices increased by 0.6% to $82.83 per barrel, with a session low of $81.95.
- Brent crude prices rose by 0.5% to $85.85 per barrel, with a session low of $85.05.
- On Wednesday, US crude prices had risen by 0.8%, recovering from a two-week low of $80.83.
- Brent crude increased by 0.5%, ending a three-day losing streak and bouncing back from a low of $84.03 on July 26.
The Dollar:
The dollar index dropped by 0.9% on Thursday, extending its losses for the second day and reaching a five-week low of 104.08 against a basket of major currencies.
A weaker dollar makes dollar-denominated commodities more affordable for holders of other currencies. This decline followed lower-than-expected US inflation data, which increased the likelihood of multiple Federal Reserve rate cuts this year.
US Stocks:
The Energy Information Administration reported a drawdown of 3.4 million barrels in US crude stocks last week, bringing the total to 445.1 million barrels, contrary to analysts' expectations of a 0.7 million barrel buildup.
Gasoline stocks decreased by 2 million barrels to 229.7 million barrels, while distillate stocks increased by 4.9 million barrels to 124.6 million barrels.
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