Oil prices rose sharply on Wednesday after U.S. economic data showed that inflation in the world’s biggest oil consumer rose moderately in March.
Brent crude gained $1.11, or 1.3%, to $86.72 U.S. a barrel while U.S. West Texas Intermediate rose $1.03, or 1.3%, to $82.56.
Prices had risen about 2% on Tuesday amid optimism that the U.S. Federal Reserve is getting closer to ending its cycle of interest rate hikes.
The U.S. Consumer Price Index (CPI) climbed 0.1% last month after advancing 0.4% in February, the U.S. Labor Department said on Wednesday.
In the 12 months to March 31 the CPI increased 5%, the smallest year-on-year gain since May 2021. The CPI rose 6% year on year in February.
A weaker U.S. currency makes dollar-priced oil cheaper for buyers holding other currencies.
Meanwhile, data from the American Petroleum Institute showed crude inventories rose by about 380,000 barrels in the week ended April 7, against forecasts from eight analysts polled by Reuters for a decline of 600,000 barrels.
At the same time, gasoline inventories rose by about 450,000 barrels, according to the API report. Analysts had expected a drawdown of 1.6 million barrels.