Oil prices experienced a period of stabilisation on Thursday, following a surge to a seven-week high in the previous session. This surge was largely fuelled by Russia’s decision to restrict fuel exports until the end of the year. Brent futures saw a slight increase, settling 11¢, or 0.16 per cent higher, at $US69.42 a barrel. In contrast, US West Texas Intermediate futures experienced a minor decrease, losing 1¢, or 0.02 per cent, to settle at $US64.98.
Both benchmarks had previously gained 2.5 per cent on Wednesday, reaching their highest levels since August 1. This upward movement was attributed to a surprise drop in US weekly crude inventories, coupled with concerns regarding potential supply disruptions stemming from Ukraine’s attacks on Russia’s energy infrastructure. These factors combined to create a volatile market environment.
However, gains were somewhat limited by new US economic data. The Bureau of Economic Analysis reported that US gross domestic product increased at an upwardly revised 3.8 per cent annualised rate last quarter. This stronger-than-expected economic data may lead the US Federal Reserve to exercise greater caution in implementing further interest rate cuts. While the central bank cut rates by a quarter of one percentage point last week, its first cut since December, the robust economic figures could temper future reductions.
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