Oil advanced from a five-month low on positive demand signals including a drop in US inventories and signs the Federal Reserve is preparing to cut interest rates.
West Texas Intermediate rose toward $70 a barrel, after climbing 1.3% on Wednesday from its lowest since late June. Global benchmark Brent was near $75. US crude stockpiles declined for a second week, according to the Energy Information Administration.
The Fed held interest rates steady for a third straight meeting and gave the clearest signal yet that its aggressive tightening campaign is finished. Chair Jerome Powell indicated policymakers are now turning their focus to when to cut borrowing costs as inflation continues to slow. Treasuries surged and an index of the dollar weakened to a four-month low, making commodities priced in the greenback more attractive for international buyers.
Source: moneyweb
