Oil prices stabilized on Thursday in U.S. interest rate hikes could be seen to be paused. Also, the passing of a crucial vote on the U.S. debt ceiling bill was offset by a report of rising inventories in the world’s biggest oil consumer.
U.S. Federal Reserve officials on Wednesday suggested interest rates could be kept on hold this month and the U.S. House of Representatives passed a bill suspending the government’s debt ceiling, improving the chance of averting a disastrous default.
Brent crude futures lost 43 cents, or 0.59%, to $72.17 a barrel, while U.S. West Texas Intermediate crude slipped 31 cents, or 0.46%, to $67.78. Both benchmarks fell on Tuesday and Wednesday, after the Memorial Day weekend.
Mixed demand indications from China, the world’s biggest oil importer, have nonetheless weighed on the market, as has industry data showing a rise in U.S. crude inventories.
Market sources citing American Petroleum Institute figures on Wednesday said that U.S. crude inventories rose by about 5.2 million barrels last week.
Also on the radar screen is the June 4 meeting of the OPEC+ producer group, in which the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia will discuss whether or not to cut oil production further.
Alliance sources told Reuters that OPEC+ is unlikely to deepen supply cuts at their ministerial meeting on Sunday despite a fall in oil prices toward $70 a barrel.