OIL PRICES FALL AMID WEAK DEMAND OUTLOOK, FED DECISION TO MAINTAIN POLICY RATE

ANKARA, June 14 (Bernama-Anadolu) -- Oil prices fell on Friday due to growing demand concerns in the US, the world's largest oil consumer, the US Federal Reserve's decision to keep its policy rate unchanged, and ceasefire talks in the Middle East, reported Anadolu.

International benchmark Brent crude traded at US$82.44 per barrel at 10.43 am local time (0743 GMT), a fall of 0.37 per cent from the closing price of US$82.75 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at US$78.19 per barrel at the same time, a 0.55 per cent drop from the previous session that closed at US$78.62 per barrel.

The Fed’s decision to maintain its hawkish stance in the face of slower inflation led to a strong risk perception, which in turn led to lower oil prices.

The bank announced that it would not change its policy rate in line with expectations but would keep rates constant in the range between 5.25 per cent and 5.50 per cent.

This decision supported a stronger US dollar against other currencies, dulling oil demand and supporting price declines.

The US dollar index, which measures the US dollar's value against other currencies, rose by 0.24 per cent to 105.44 at 10.17 am local time (0717 GMT).

Despite the summer period when oil demand is typically high, data indicating an increase in US crude oil inventories last week raised demand concerns.

The Energy Information Administration (EIA) announced a 0.8 per cent increase, equivalent to 3.7 million barrels, in US commercial crude oil inventories during the week ending June 7.

Additionally, efforts to implement a ceasefire in the Middle East, home to the vast majority of global oil reserves, continue to impact oil prices.

Speaking on Thursday, President Joe Biden stated that the US would keep pushing for a ceasefire that he had declared for the fighting that has claimed the lives of over 37,000 people in the Gaza Strip.

Biden confirmed that leaders at the G7 summit in Italy had discussed the ceasefire but conceded that he was not confident but was hopeful that one would be reached.

--BERNAMA-ANADOLU