WTI price receives support as easing inflation data has heightened expectations of a Fed rate cut in September.
The US Consumer Price Index declined by 0.1% MoM in June, marking its lowest level in more than three years.
US gasoline demand reached 9.4 million barrels per day, the highest level for the Independence Day holiday week since 2019.
West Texas Intermediate (WTI) Oil price trades around $81.80 per barrel during Asian hours on Friday. Crude Oil prices have found support as softer-than-expected US Consumer Price Index (CPI) data for June has heightened expectations of a potential Federal Reserve (Fed) rate cut in September. Lower borrowing costs support the US economy, the largest Oil consumer in the world, which in turn boosts crude Oil demand.
The US Consumer Price Index (CPI) declined by 0.1% month-over-month in June, marking its lowest level in more than three years. The core CPI, which excludes volatile food and energy prices, rose by 3.3% year-over-year in June, compared to May's increase of 3.4% and the same expectation. Meanwhile, the core CPI increased by 0.1% month-over-month, against the expected and prior rise of 0.2%.
Federal Reserve Bank of Chicago President Austan Goolsbee said on Thursday that the US economy appears to be on track to achieve 2% inflation. This suggests Goolsbee is gaining confidence that the time for cutting interest rates may soon be approaching. He also stated "My view is, this is what the path to 2% looks like," according to Reuters.
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