2024.03.0108:55:00UTC+00Oil Prices Gain On Fed Rate Cut Hopes

Oil prices rose on Friday as investors reacted favorably to in-line U.S. inflation data and comments from Fed officials signaling the possibility of rate cuts in June.

Benchmark Brent crude futures rose about 1 percent to $82.72 a barrel, while WTI crude futures were up 1 percent at $79.02.

A slew of weak data, including the release of the Federal Reserve's preferred inflation gauge, eased concerns surrounding interest-rate cuts.

New York Federal Reserve Bank President John Williams reiterated on Thursday that the next move for the U.S. central bank will likely be a cut to its interest rate target.

Federal Reserve Bank of San Francisco President Mary Daly, meanwhile, highlighted the shift towards a more data-dependent approach.

Her Atlanta counterpart Raphael Bostic said it will be appropriate to begin cutting interest rates this summer.

It is believed that interest-rate cuts will boost economic activity and augur well for fuel demand.

The U.S. Energy Information Administration said in its Thursday report that oil demand in the U.S. surged to a four-year high in 2023 and would likely hold near that level through 2024.

Markets now await an OPEC+ decision on supply agreements for the second quarter.