ALBAWABA - Oil prices rose by around 2 percent during Wednesday's trading after U.S. inflation data revealed a decline in consumer prices in the United States for the ninth consecutive month.
The annual inflation rate slowed to 5 percent in March, from 6 percent in February, the lowest level since May 2021, according to the U.S. Bureau of Labor Statistics.
These figures supported speculations of the possibility of the Federal Reserve slowing down its monetary tightening pace and raising interest rates in the near future.
However, there is still a 70 percent probability of a recent additional 25 basis points increase in the upcoming Fed meeting, according to the "Fed Watch" tool that tracks traders' expectations of U.S. interest rates.
Brent crude futures inched up by 1.99 percent to $87.29 a barrel, while U.S. West Texas Intermediate futures rose 2.13 percent to $83.27 a barrel.
The U.S. Energy Information Administration's data released on Wednesday showed a slight increase in crude oil inventories of about 600,000 barrels in the week ending on April 7, compared to a decline in gasoline and distillate inventories of 300,000 and 600,000 barrels, respectively.
