Oil steadied after a three-day advance as investors weighed an unexpected build in American crude stockpiles and the outlook for US monetary policy, which is expected to be tighter for longer.
West Texas Intermediate traded near USD78 a barrel after climbing almost 4% this week. Brent closed above USD82. US crude inventories swelled by 3.7 million barrels last week, compared with an earlier industry report that had pointed to a decline. Government figures also signalled rising gasoline stockpiles.
US consumer price data sparked a risk-on mood across broader markets on Wednesday as inflation cooled for a second month. Still, the Federal Reserve left interest rates unchanged and dialled back its forecasts for cuts.
Crude has trended lower since April on concerns about the demand outlook and ample supply, while geopolitical tensions eased. The International Energy Agency said in a report on Wednesday that global markets face a major surplus this decade as the shift away from fossil fuels picks up pace. – Bloomberg
