WASHINGTON (dpa-AFX) - Crude oil prices are up firmly above previous closing levels Thursday morning amid optimism about the outlook for interest rate. Expectations of higher demand for oil from major consumers contributed as well pushing up prices.
West Texas Intermediate crude oil futures for July are up $0.54 or 0.73% at $74.61 a barrel.
Brent crude futures are gaining $0.50 or 0.65% at $78.91 a barrel.
Optimism about a rate cut by the Federal Reserve in September outweighs recent data showing a jump in U.S. crude inventories, and the OPEC+'s decision to phase out production cuts gradually over the next one year.
The European Central Bank today cut interest rate for the first time since September 2019, reducing the benchmark rate by 25 basis points, citing an improvement in inflation outlook.
The Governing Council, led by ECB President Christine Lagarde, cut the main refinancing rate by 25 basis points to 4.25%. The deposit facility rate was lowered from a record high to 3.75% and the marginal lending rate was reduced to 4.5%.
The ECB has raised the headline and core inflation projections for this year and next. The ECB staff now sees headline inflation at 2.5% this year, 2.2% next year and at 1.9% in 2026.
Core inflation that excludes energy and food is projected at 2.8% this year, 2.2% next year and 2% in 2026.
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