O Petroleum rose for a third consecutive day on Wednesday as investors became more comfortable with risk a day after the chairman’s comments Federal Reserve concerns about future increases in interest rates have eased. fees.
The US central bank chair’s comments, Jerome Powell, on Tuesday, were seen as less aggressive than feared, increasing risk appetite and weighing on the dollar. A weaker US currency makes the Petroleum cheaper dollar-denominated for buyers holding other currencies.
O Brent oil closed up $1.40, or 1.7%, at $85.09 a barrel, while U.S. West Texas Intermediate (WTI) crude closed up $1.33, or 1.7%, for 78.47 dollars.
Investors are hoping less aggressive hikes in US interest rates will help further economy in the world to avoid a sharp economic slowdown or recession that would affect the demand for oil. Meanwhile, the end of restrictions on Covid-19 at China should also support fuel demand.
“An impending surge in oil demand, coupled with weak global supply growth, will ensure that the oil balance tightens in the coming months,” said Stephen Brennock of oil brokerage PVM.
Source: Moneytimes
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