BANGALORE (Reuters) – Oil prices are set for a third straight weekly gain, supported by rising expectations that the Federal Reserve may soon start cutting interest rates and by the wait for U.S. inflation data due later in the day.
At 11:35 a.m., Brent crude futures were up 0.9% at $87.18 a barrel.
U.S. West Texas Intermediate crude futures for August delivery gained 1.1% to $82.67 a barrel.
Both contracts are up nearly 2% on the week and are headed for a gain of just over 6% for the entire month of June.
Data on growth in U.S. personal consumption expenditure, the Fed’s preferred measure of inflation, will be released at 2:30 p.m. ET.
Rising expectations of an imminent Fed easing cycle have sparked a rally in stock markets. According to CME’s FedWatch tool, traders are looking at a 64% chance of a first Fed cut in September, up from 50% a month ago.
Easing interest rates could be a boon for crude oil prices, leading to increased consumer demand.
The only factors weighing on prices are the fluctuations of the US dollar, at a two-month high, and political uncertainty in France.
(Translated by Luca Fratangelo, edited by Gianluca Semeraro)
