Oil prices increased in early Asian trading on Thursday, as strong fuel demand in the United States overshadowed concerns about the possibility of the world's largest oil-producing and consuming country defaulting on its debts. By 00:15 GMT, Brent crude futures rose by 26 cents, or 0.34%, to $76.67 per barrel. U.S. crude futures increased by 28 cents to $72.84.
Recent U.S. data showed a rise in consumer prices in April, increasing the likelihood that the Federal Reserve (the U.S. central bank) may keep interest rates elevated, which could dampen oil demand. Rising global interest rates have pressured oil prices in recent months, with traders concerned about a potential recession.
However, there have been signs of robust fuel demand in the United States. U.S. gasoline stocks fell by 3.2 million barrels last week, significantly more than the 1.2 million barrels anticipated by analysts. Additionally, data from the U.S. Energy Information Administration showed a decline in distillate inventories. Furthermore, demand for jet fuel in the U.S. reached its highest level since December 2019.
Meanwhile, detailed discussions have commenced regarding raising the U.S. government debt ceiling of $31.4 trillion, with Republicans firmly insisting on cuts to spending.
