Amanze Chinonye
Oil prices rose on Wednesday, extending a six-session rally, as renewed concerns over Middle East supply disruptions offset mixed signals from global stock markets ahead of U.S. inflation data that could shape expectations for Federal Reserve policy.
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Brent crude rose 0.7% to $89.49 a barrel, while U.S. West Texas Intermediate gained 0.8% to $83.89. Both benchmarks settled more than $1 higher on Tuesday, their strongest closes since July 31.
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Middle East Tensions Push Brent Crude Above $98, Raise Global Supply Concerns
The gains came as attacks on vessels and uncertainty over the Strait of Hormuz raised concerns about further disruption to global oil flows. Vessel traffic through the key shipping route has fallen sharply, while Iran has said the strait will remain closed unless its conditions for ending the conflict are met.
European shares were broadly steady, while Asian markets mostly advanced. South Korea’s Kospi gained 3.7%, and U.S. stock futures edged higher as investors awaited the U.S. July Consumer Price Index.
Economists polled by Reuters expected headline CPI to rise 3.4% year-on-year in July, down from 3.5% in June, with monthly inflation forecast at 0.1%. Core inflation was expected at 2.5% annually and 0.2% from the previous month.
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Oil Prices Slip as Some Tankers Pass Through Strait of Hormuz
The data, due at 8:30 a.m. Eastern Time, was being closely watched for clues on the Fed’s next policy move. A stronger-than-expected reading could reinforce expectations for tighter policy, while a softer result could strengthen bets on lower interest rates.
For markets, the combination of rising oil prices and persistent inflation risks has complicated the outlook for monetary policy, with investors weighing the impact of higher energy costs against signs of moderating price pressures.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
