Oil earns a fifth day after the fall of US stocks. UU. In the midst of rate optimism
* Fed expects to reduce rates
* Oil prices are heading for a month of decline
* Interactive stock chart: https://tmsnrt.rs/2y7dfqh (Add comments, charts, tables, update prices)
By Aaron Sheldrick
TOKYO, July 31 (Reuters) - Oil prices rose for the fifth day on Wednesday, driven by a larger than expected decline in US inventories. UU. And while investors expected a widely expected cut in interest rates by the Federal Reserve, the first in more than 10 years
Brent crude rose 44 cents, or 0.7%, to $ 65.16 per barrel at 0324 GMT.
The intermediate oil from the western US UU. He earned 41 cents, or 0.7%, at $ 58.46 a barrel.
The market is quite optimistic about what the Fed is going to do with interest rates and, as a result, we will see more demand, Jonathan Barratt, director of investments at Probis Group in Sydney, said by telephone, referring to The widely expected cut .
Central bankers in the United States began their two-day meeting on Tuesday and were expected to reduce loan costs for the first time from the depths of the financial crisis more than a decade ago.
US consumer spending and prices rose moderately in June, pointing to slower economic growth and benign inflation that cemented expectations of Fed rate cuts.
The president of the United States, Donald Trump, reiterated on Tuesday his call for the Fed to make a large cut in interest rates. Barratt said that would be an unlikely movement of central bankers.
Despite price gains, Brent will calm down in July due to continuing concerns about demand, which is heading for a decrease of about 2%, while the WTI has dropped a penny.
Still, US inventories. UU. They have declined in recent weeks, suggesting that demand concerns are exaggerated.
Crude oil stocks fell again last week, along with gasoline and distillate inventories, data from the American Institute of Petroleum Institute (API) industrial group showed on Tuesday.
A definitive seasonal trend is emerging as inventory consumption continues to exceed analyst expectations by one mile, suggesting that analysts have greatly underestimated the consumption and breadth of seasonal demand this year, VM Markets Pte said in a note.
Crude oil inventories fell 6 million barrels in the week ending July 26 to 443 million barrels, compared to analysts' expectations in a Reuters survey of a decrease of 2.6 million barrels, the data showed. of API.
If the US government data. UU. They confirm Wednesday morning, the decrease would reduce crude stocks for the seventh consecutive week. That would be the longest stretch since they fell during a record of 10 consecutive weeks that ended in January 2018.
However, total oil reserves would remain approximately 3% higher than the five-year average.
(Aaron Sheldrick report; Richard Pullin edition) This story has not been edited by The Times of India and is automatically generated from a syndicated feed to which we subscribe.