US West Texas Intermediate crude oil settled at $ 58.58 a barrel, up 53 cents, or 1%, during the day. For all of July, it rose 11 cents, or 0.2%.
London-based Brent, the benchmark for oil outside the United States, settled at $ 65.17, up 45 cents, or 0.7%, for the session. But for the month, it dropped $ 1.37, or 2.1%.
Weeks to date, both crude gauges rose sharply, with WTI showing a gain of 3.4% and Brent 1.6%. But with two more sessions to wrap up the week, it was uncertain whether the market could maintain its upward momentum and how much it would let go.
The oil bullet also barely exploited a Reuters study Wednesday that suggested OPEC oil production hit an eight-year low in July by a combination of sharp Saudi production cuts, crude Iranian crushing by US sanctions and US cuts. others.
Despite the cuts led by OPEC, “global oil stocks have failed to fall and the market remains well supplied,” Stephen Brennock of PVM oil broker told Reuters.
Crude prices added to profits after the Energy Information Administration said in its regular weekly report that they were down by about 8.5 million barrels a week until July 26. This was compared to forecasts for a stock withdrawal of just 2.59 million barrels.
U.S. crude stocks have plunged for seven straight weeks now, draining nearly 50m barrels of inventory.
The EIA also reported that gasoline inventories were down nearly 1.8 million barrels last week, compared to expectations for a 1.45 million barrel draw. Distilled stocks fell by 894,000 barrels, compared to forecasts of 1.05 million barrels.
Both Brent and WTI also made limited gains after the Federal Reserve announced a widely expected quarterly rate cut, the first cut in US interest rates since 2008.
But even so, the Fed did not immediately indicate whether it would cut rates by another quarterly percentage point in September, as many traders hoped. This was a sign that gold could rebound from its level in the coming days.
John Hardy, strategist at Saxo Bank, said guidance would be essential for markets that want to know whether this will be a one-off cut or the start of a series.
“The Fed may not want to encourage the asset market, but again, any policy link to other factors, such as the strong US dollar, will allow the market to draw its own conclusions that the Fed will continue to cut,” he said.
“We’re thinking of it basically as a middle-cycle fix in politics,” Fed Chairman Jay Powell said.
“What you have seen during the year, as we have shifted to a more attractive policy, the economy has performed as expected with gradually increased support,” Powell added. “Increasing support for policies has kept the economy on track and kept the outlook favorable.”/Investing.com