Oil steadied after its first drop this week as attention turned from expanding American fuel stockpiles to the prospects for monetary easing as the world’s top central bankers gather in Jackson Hole, Wyoming.
Futures in New York were little changed after rising as much as 0.8% earlier. They had rebounded from a 1.2% decline on Wednesday that was spurred by a surprise jump in U.S. diesel and gasoline inventories. Investors see another rate cut at the Federal Reserve’s Sept. 17-18 meeting and will be closely watching Chair Jerome Powell’s speech Friday at the annual policy retreat.
Oil is heading for its first back-to-back weekly gain since June, aided by a drone attack on a Saudi Arabian oil field and hints of a thaw in U.S.-China trade relations. U.S. crude inventories fell by 2.7 million barrels last week, the first drop in three weeks, the Energy Information Administration said Wednesday.
West Texas Intermediate crude for October delivery fell 4 cents to $55.64 a barrel on the New York Mercantile Exchange as of 7:55 a.m. in London after being up as much as 43 cents earlier. The contract has risen 1.4% so far this week.
Brent for October settlement traded 10 cents lower at $60.20 a barrel on the ICE Futures Europe Exchange. The global benchmark traded at a premium of $4.57 to WTI.
Source : Bloomberg