Representatives of the U.S. Federal Reserve say it is still too early to consider lowering interest rates.
Meanwhile, gasoline inventories in the U.S. unexpectedly increased.
On Friday, oil prices fell, with Brent crude sliding further below $82 per barrel (159 liters). Market sentiment was influenced by the latest statements from Federal Reserve representatives indicating that it is too early to consider lowering interest rates, as well as the unexpected rise in U.S. gasoline inventories.
TASR reports this information based on a Reuters report and data from Bloomberg.
The price of North Sea Brent crude for July delivery reached $81.71 (75.55 euros) per barrel by 7:50 AM CEST, down 15 cents from the previous close. The price of U.S. West Texas Intermediate (WTI) crude reached $77.70 per barrel, representing a decrease of 21$ from the previous close.
Inflation Risks Persist
Dallas Fed President Lorie Logan stated that despite recent improvements, she remains concerned about elevated inflation risks. According to her, the U.S. central bank should remain flexible and keep all options on the table.
“It is really important that the Fed does not focus on just one path for future monetary policy,” Logan said. “I think it is still too early to consider reducing interest rates.“
Unmet Expectations Additionally, the U.S. Department of Energy announced that gasoline inventories unexpectedly increased last week. Inventories rose by approximately two million barrels to 228.8 million barrels, while markets had expected a decrease of 400,000 barrels.
Although crude oil inventories did decline, the drop was less than the American Petroleum Institute (API) had estimated. The API had predicted a decrease of 6.49 million barrels, but the Department of Energy reported a decline of 4.2 million barrels.
