Oil prices remained relatively stable on Thursday, receiving support from a surprise drop in US crude inventories and the Federal Reserve’s commitment to its projected rate cuts for the year.
In the global market, Brent crude futures for May experienced a marginal decrease of 3 cents, reaching $85.92 a barrel by 0929 GMT.
This followed a decline of 1.6% on Wednesday. Similarly, US West Texas Intermediate futures for May saw a modest drop of 10 cents, or 0.1%, settling at $81.17 a barrel after a previous session decrease of about 1.8%.
The US Energy Information Administration (EIA) reported a second consecutive weekly decline in crude inventories in the United States, the world’s largest oil consumer.
Inventories unexpectedly fell by 2 million barrels to 445 million barrels in the week ending March 15, driven by increased exports and rising refinery activities.
Gasoline inventories also recorded a seventh consecutive weekly decline, dropping by 3.3 million barrels to 230.8 million barrels, indicating consistent strong demand for fuel.
Ukrainian attacks on Russian refineries have caused disruptions, shutting down approximately 7% of Russian refining capacity, equivalent to around 370,500 barrels per day. Analysts warn that prolonged disruptions could compel Russian producers to reduce supply if they face challenges in exporting crude oil or encounter storage limitations.
Investors also found reassurance in the Federal Reserve’s decision to maintain interest rates within a range of 5.25% to 5.50% while retaining its outlook for three rate cuts this year.
Additionally, in Germany, the economic downturn showed signs of easing in March, with business activity in the service sector approaching stabilization, as indicated by a preliminary survey.
