Oil prices rise as inflation eases, bolstering market hopes for Fed rate cut later this year

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The inflation and interest rate outlook is outweighing mixed oil demand signals from the IEA and OPEC.

Crude oil futures rose Thursday as inflation eased, bolstering hopes that the Federal Reserve will cut interest rates later this year.dropped 0.1% from May to June, putting the 12-month rate at 3%, near the lowest level in more than three years, according to the Department of Labor.The market is expecting the Federal Reserve to start cutting interest rates in September. Lower interest rates typically stimulate economic growth, which can bolster crude oil demand.

The inflation and interest rate outlook overshadowed mixed signals on oil demand for this year. The Paris-based International Energy Agency said global demand eased to 710,000 barrels per day in the second quarter, the slowest increase since the fourth quarter of 2022, as consumption in China contracted.The IEA is forecasting global oil demand will average just under 1 million bpd in 2024 due to subpar economic growth, greater energy efficiency and electric vehicle adoption.

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Oil prices rise as inflation eases, bolstering market hopes for Fed rate cut later this yearThe inflation and interest rate outlook is outweighing mixed oil demand signals from the IEA and OPEC.
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