Oil prices decreased on Thursday with data indicating a rise in US commercial crude oil inventories, while expectations that the US Federal Reserve (Fed) will implement an interest rate cut later in the day and the prospect of increased economic activity in both the US and China limited further price falls.
The international oil benchmark of Brent crude decreased 0.4% to $74.77 per barrel at 11.05 a.m. local time (0805 GMT), down from the previous session's close of $75.06.
The US benchmark West Texas Intermediate also fell by 0.4% to $71.30 per barrel, compared to $71.59 at the prior session's close.
Oil prices fell following data showing US commercial crude oil inventories increased more than expected last week compared to the previous week, indicating weakening oil demand in the world's biggest crude consumer.
The US Energy Information Administration announced that commercial crude oil stocks in the country rose by approximately 2.1 million barrels to 427.7 million barrels. The market expectation was that stocks would increase by about 300,000 barrels.
However, expectations that the Fed will announce an interest rate cut at today's meeting limited further price falls.
Financial markets are widely anticipating a 0.25 percentage point reduction in the Federal Open Market Committee's benchmark interest rate. Increased economic activity is expected to boost oil demand.
Donald Trump's victory in the US presidential elections on November 5 also influenced oil prices.
US President-elect Trump thanked Americans early Wednesday for the 'honor of being elected to the nation's highest office.' Separately, his running mate JD Vance thanked Trump for the trust he placed in him.
'I think that we just witnessed the greatest political comeback in the history of the United States of America,' Vance said in a short address to supporters.
These statements reinforced the upward movement in prices by fueling expectations of increased economic activity in the world's largest oil-consuming country.
Meanwhile, according to several international media outlets, Chinese regulators have urged banks to lower their interbank deposit rates in an effort to stimulate the economy.
Expectations that these measures will boost economic activity in the world's biggest oil importer and drive up oil demand also aided the upward movement of oil prices.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr