Brent exceeds $87 and reaches its highest levels since April

Thursday, July 04, 2024 - 21:26
Point Trader Group

On Thursday, the price of Brent crude reached its highest level since April and was trading above $87 after data yesterday, Wednesday, showed a decline in US inventories.

By 1543 GMT, Brent crude futures rose 13 cents, or 0.2%, to $87.47 per barrel. US West Texas Intermediate crude futures also rose three cents to $83.91 a barrel, with activity slowing due to the Independence Day holiday in the United States.

The price of Brent crude oil rose at settlement in the previous session by 1.3% to $87.34, which is the highest closing level since April 30.

West Texas Intermediate crude ended yesterday's trading session at an 11-week high of $83.88.

Oil's gains came after a larger-than-expected decline in US crude inventories.

Energy Information Administration data showed US inventories fell more than expected in the week ending June 28, limiting the decline in prices.

Demand concerns increased after US data showed an increase in the number of people applying for unemployment benefits last week, while the number of people registered on unemployment lists increased.

However, analysts said that weak economic data may encourage the US Federal Reserve to start cutting interest rates, a move that would support oil markets.

Meanwhile, data issued by ADP showed that the number of jobs in the private sector increased by 150,000 in June, which is less than expectations for an increase of 160,000 and after it rose by 157,000 in May.

Reuters reported on Thursday, citing two informed sources, that the Russian oil companies Rosneft and Lukoil will reduce crude exports through the port of Novorossiysk on the Black Sea to a very large extent in July.

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