On Thursday morning, oil prices found steady ground after dipping in the last session following the concerns on rising inflation in the US, flickered by surging energy costs. It may now prompt the government to give away additional cruise stockpiles for bringing prices down.
Notably, Brent crude futures fell on Wednesday by 2.5 per cent. On the other hand, WTI (West Texas Intermediate) futures plunged by 3.3 per cent after the news that US inflation climbed at the quickest rate in 30 years, pushing the US dollar upside. Moreover, the US crude inventories, spiked once the government gave away some strategic reserves. It is noticeably the biggest oil consumer.
Brent crude futures rose to USD 82.95 a barrel, up by 0.4 per cent or 31 cents at 0515 GMT. Meanwhile, the WTI futures inched up to USD 81.63, up by 0.4 per cent or 29 cents.
Interestingly, on Wednesday, the consumer inflation data displayed the US prices rose at 6.2 per cent year-on-year. The dollar hiked as per expectations that the actions initiated by US Federal Reserve and White House to cut down the rising prices may hike spike the interest rates and stringent monetary policy. Oil trades conversely to the US dollar prices.
Meanwhile Joe Biden, the US President inquired the National Economic Council to make amends for reducing energy costs. Moreover, it asked the Federal Trade Commission to get after the market manipulation for reversing inflation in the energy sector.
However, cutting down the energy costs would mean releasing additional crude from the SPR (Strategic Petroleum Reserve)
Meanwhile, crude inventories surged by 1 million barrels during the week to November 5. However, the expectation of analysts was a hike of 2.1 million barrels.