(New York) Unfazed by the Fed Chairman’s remarks about more US interest rate hikes to come, oil ended higher on Wednesday pending data on US crude inventories.
A barrel of Brent from the North Sea, for delivery in August, gained 1.60% to 77.12 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery the same month, which was the first day of use as a benchmark contract, advanced 1.88% to 72.53 dollars.
The oil market barely reacted to statements by Jerome Powell, head of the American central bank (Fed), before the United States Congress, reiterating that the Fed could raise its rates further, “but more slowly”, to overcome US inflation.
“Oil appears to have bottomed out,” Kpler analyst Matt Smith said.
“If we look at what awaits us, there are production cuts from Saudi Arabia which will take place at the beginning of July” and this prospect of a reduction in the supply of black gold favors prices on the rise, has he noted.
Brokers are also focused on the state of US crude inventories, which should be “friendly” to the market, ie showing a decline in reserves which helps prices.
Investors will thus watch Wednesday evening for data on crude inventories from the federation of professionals in the sector, the American Petroleum Institute (API), before those, more official, of the American Agency for information on energy ( EIA) which will be published on Thursday.
“Brokers are positioning themselves with these figures”, while a drop in stocks is expected due to “strong exports” last week, said the Kpler analyst.