SINGAPORE- Oil prices climbed on Thursday after US inflation and economic data sparked hopes that the Federal Reserve may have fewer interest rate hikes in store and Chinese trade data showed monthly oil imports were the second-highest on record in June.
Brent crude futures gained 36 cents, or 0.5 percent, to $80.47 per barrel, while US West Texas Intermediate crude futures were up 29 cents, or 0.4 percent, at $76.04.
US data on Wednesday showed consumer prices rose modestly in June, registering the smallest annual increase in more than two years. Markets expect one more interest rate rise, but oil traders hope that may be it because higher rates can slow economic growth and reduce oil demand.
“The lower-than-expected read in US inflation suggests that the tightening cycle from the Fed so far are having its desired effect in moderating pricing pressures,” said Yeap Jun Rong, market strategist at IG, adding this had provided a “risk-on” environment for oil prices.
“Some catch-up gains seem to be at play, with the lacklustre US dollar and some follow-through in China’s stimulus hopes lately providing the catalysts for bearish sentiments to unwind,” Yeap said.
Meanwhile, China’s crude imports in June totaled 52.06 million metric tons, or 12.67 million barrels per day (bpd), jumping 45.3 percent on the year and hitting its second highest monthly figure on record, customs data released on Thursday showed.
Crude oil imports for January-June were up 11.7 percent at 282.1 million metric tons, while refined oil products exports for January-June were up 44.7 percent at 31.31 million metric tons, customs data showed.
