Oil prices increased on Thursday, reversing losses from the previous session due to data indicating strong demand and signs of improving trade conditions.
Oil Price Surge
Brent crude futures rose by 0.39% (27 cents), reaching $68.79 per barrel. Similarly, West Texas Intermediate crude increased by 0.47% (31 cents), to $66.69 a barrel. Both benchmarks had dipped over 0.2% in the prior session.
Economic Factors and Stockpiles
According to the U.S. Energy Information Administration, crude oil stocks fell by 3.9 million barrels last week, down to 422.2 million. This drop far exceeded the expected 552k-barrel draw, hinting at stronger demand and tight supply. However, increases in diesel stockpiles limited the upside potential for crude prices.
Gold Market Situation
Gold prices slipped on Thursday due to a strengthening U.S. dollar. As of 06:55 GMT, spot gold fell 0.4%, reaching $3,334.19 an ounce. This occurred after President Trump stated that it was 'highly unlikely' he would fire Fed Chair Powell. Meanwhile, the largest gold ETF, SPDR Gold Trust, reported a 0.33% increase in its holdings, reaching 950.79 tons.
Overall, oil prices continued to rise despite concerns over potential supply surplus, while gold prices fell due to a strong dollar.
