Crude rises for the third day in a row, as concern about rate hikes fades

FILE PHOTO: Oil rockers are seen against a sunset at the Daqing oil field in China’s Heilongjiang province. December 7, 2018. REUTERS/Stringer/File

Por Alex Lawler

LONDON, Feb 8 (Reuters) – Oil rose for a third straight day on Wednesday as investor concerns over rising U.S. interest rates eased and an industry report pointed to falling inventories. crude Americans.

* Tuesday’s comments from Federal Reserve Chairman Jerome Powell were seen as less dour than feared, boosting risk appetite and weighing on the dollar. A weaker greenback makes oil cheaper for holders of other currencies.

* “It looks like traders had gotten a bit more defensive in anticipation of a change in stance, but Powell held back from making the jump,” said Craig Erlam, an analyst at OANDA.

* As of 0912 GMT, Brent crude was up 99 cents, or 1.2%, at $84.68 a barrel, while US West Texas Intermediate (WTI) was up 93 cents, or 1.2%. , at $78.07.

* With less aggressive rate hikes in the United States, the market hopes the world’s largest economy can fend off a sharp economic slowdown or even a recession that would hurt oil demand, while China’s reopening after ending to COVID restrictions will also boost fuel use.

* “The impending rise in oil demand and weak growth in global supply will ensure that the oil balance tightens in the coming months,” said Stephen Brennock of PVM brokerage.

* As for supply, OPEC and its allies, known as OPEC+, decided last week to maintain production limits and an Iranian official said on Wednesday that the group was likely to maintain its current policy at its next meeting.

* In addition, the earthquake that struck Turkey and Syria on Monday disrupted the flows of crude from Iraq and Azerbaijan from Ceyhan, although the Iraqi pipeline to the export center resumed flows on the day before.

(Additional reporting by Sonali Paul in Melbourne and Jeslyn Lerh in Singapore; editing in Spanish by Carlos Serrano)

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