Global Oil Prices Soar Post Data Release by USA

Global oil prices rebounded on Thursday after two consecutive sessions of decline, as investors reevaluated the latest U.S. crude oil and gasoline inventories data and resumed buying activity. Brent crude futures for May gained 29 cents, or 0.34 per cent, reaching $86.38 a barrel, while the June contract rose by 28 cents, or 0.33 per cent, to $85.69 at 0041 GMT. The May contract is set to expire on Thursday.

U.S. West Texas Intermediate (WTI) crude futures for May delivery increased by 41 cents, or 0.50 per cent, reaching $81.76 a barrel. The previous session saw pressure on oil prices following unexpected rises in U.S. crude oil and gasoline inventories last week, driven by an increase in crude imports and sluggish gasoline demand, according to data from the Energy Information Administration.

However, the increase in crude stock was smaller than the build projected by the American Petroleum Institute.

"We expect US inventories to rise less than normal in reflection of a global oil market in a slight deficit. This will likely hand support to the Brent crude oil price going forward," noted Bjarne Schieldrop, chief commodities analyst at SEB Research.

Recent disappointing inflation data affirms the case for the U.S. Federal Reserve to hold off on cutting its short-term interest rate target, a Fed governor said on Wednesday, but he did not rule out trimming rates later in the year.

"The market is converging on a June start to cuts for both the Fed and the European Central Bank," stated JPMorgan analysts in a note, noting that lower interest rates support oil demand.