Oil prices steadied as traders assessed the impact of the latest round of OPEC+ production cuts and API data showed another drop in U.S. national business inventories.
The American Petroleum Institute (API) estimated that national crude oil inventories fell by 4.4 million barrels last week. The EIA data, due later on Thursday, showed inventories were at their lowest level in nearly six months.
The surge in interest rates is causing global oil inventories to decline, potentially setting the stage for a further surge in prices.
Minutes from the Fed’s most recent meeting showed that an overwhelming majority of Fed officials agreed that further tightening of policy may be needed this year.
Further rate hikes would boost the dollar, potentially making dollar-denominated commodities less attractive. Charu Chanana, a market strategist at Saxo Capital Markets in Singapore, said demand concerns had eased as U.S. inventories were likely to draw down. For the rest of the week, the focus will turn to non-farm payrolls.
