US Supply Bullish, World Oil Prices Rise

Crude oil (Photo: Doc. unsplash)

JAKARTA - crude oil prices futureed up at the end of trading Thursday, June 29. This is due to continued support from last week's bullish US oil inventory data, but is limited by concerns that rising interest rates could undermine global economic growth.

West Texas Intermediate (WTI) crude futures for August delivery rose 30 cents, or 0.43 percent, to settle at 69.86 dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery rose 31 cents, or 0.42 percent, to close at 74.34 dollars a barrel on the London ICE Futures Exchange.

WTI's oil strengthened as traders remained focused on reports of bullish withdrawals greater than expected in US crude stockpiles by the US Energy Information Administration (EIA), said Vladimir Zernov, an analyst on the FX Empire's market information supplier.

US crude inventories fell 9.6 million barrels in the week ended June 23, much higher than analysts expect for a moderate drop, according to data released by the EIA on Wednesday (28/6).

"The price of oil continued to recover on Thursday after falling back to its lowest range on Wednesday," said Craig Erlam, senior market analyst at OANDA, a supplier of multi-asset online trading services.

Meanwhile, hawkish comments from central bank officials and economic uncertainty continue to limit rising oil prices.

The gradual consolidation of crude oil prices does not appear to end, with prices fluctuating only between the highest and lowest ranges over the past few months, according to Erlam.

The crude oil traders remain divided between rising interest rates and global recession concerns over rising travel demand and shrinking crude oil supply, said Dennis Kissler, senior vice president of trade at BOK Financial.

Investors are concerned about rising interest rates and economic growth after Federal Reserve Chairman Jerome Powell reiterated that he expects the pace of moderate interest rate decisions to continue in the coming months.