Brent Crude Rises Above $80 a Barrel for First Time Since May

Brent crude rose above $80 a barrel for the first time since early May as signs of tightening supplies and slower-than-expected US inflation.

(Bloomberg) — Brent crude rose above $80 a barrel for the first time since early May as signs of tightening supplies and slower-than-expected US inflation.

Prices held gains even as data showed US crude inventories jumped by nearly 6 million barrels last week, as traders focused on surging domestic demand for crude from refiners to meet summer travel demand.

Oil has climbed since OPEC+ heavyweights Saudi Arabia and Russia pledged even more output reductions in an effort to rebalance the market. Strong Russian supply — despite sanctions due to the war in Ukraine — has been a headwind for the market. Those flows are now showing signs of dropping, with average shipments falling below February averages.

Overall, the global market is now expected to tighten in the second half and stockpiles are forecast to draw through 2024, according to a report by the Energy Information Administration.

Traders have also been watching for signs of when US monetary tightening may begin to ease and for its effect on economic growth. US inflation sharply cooled last month, offering fresh hope that the Federal Reserve can soon wrap up the most aggressive interest-rate hikes in decades.

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