Global oil benchmark Brent reached a price point above $80 per barrel on Thursday following the release of US inflation data, which indicated that interest rates in the world’s largest economy are approaching their peak.
The data, made public on Wednesday, revealed a moderate increase in US consumer prices during June, marking the smallest annual rise in over two years and indicating a continued decline in inflation.
Market analysts anticipate one final interest rate hike before the US rate-hiking cycle reaches its likely summit.
Higher interest rates can hinder economic growth and diminish the oil demand.
Over the past two weeks, oil prices have soared by approximately 12%, largely due to production cuts implemented by leading oil producers Saudi Arabia and Russia, according to Craig Erlam, a senior market analyst at OANDA.
While profit-taking is expected at these levels, he noted that the data influenced a delay in such actions.
As of 0923 GMT, Brent crude futures experienced a 25 cent increase, reaching $80.36 per barrel.
Concurrently, US West Texas Intermediate crude futures rose by 17 cents, reaching $75.92.
The developments in oil prices continue to be a subject of global interest, impacting various sectors and economies worldwide.
