Key points:
- Oil prices increase as US inflation shows signs of easing.
- Strong summer fuel demand in the US supports prices, but weak Chinese demand may offset gains
Oil prices increased on Friday as signs of easing inflation in the United States boosted investor confidence. Brent crude rose to $86.12 per barrel, while US West Texas Intermediate climbed to $83.47 per barrel. The market’s optimism is driven by hopes that the Federal Reserve might soon cut interest rates, potentially stimulating economic growth and increasing fuel consumption. However, the market remains cautious, awaiting more definitive signs of action from the Fed. Strong summer fuel demand in the US also supported prices, although weak demand signals from China could temper the outlook.