Oil prices rose at settlement, and Brent crude recorded $80 a barrel for the first time since May, after inflation data in the United States raised hopes that the Federal Reserve (US central bank) might raise interest rates fewer times in the future.
Data released today, Wednesday, showed that US consumer prices rose slightly in June, recording the lowest annual increase in more than two years, and markets expect to raise interest rates again, but oil dealers hope that this time will be the last. Higher interest rates would slow economic growth and reduce demand for oil.
The International Energy Agency said that the oil market is expected to witness a shortage in supply during the second half of 2023, and attributed this to the strength of demand from China and developing countries, in addition to the supply cuts announced by Saudi Arabia, Russia and other countries in the last period. New forecasts are expected from the agency this week.
