WTI crude futures rose by more than 3% to above $82 per barrel on Thursday as risk appetite was back to markets after recent interest rate decisions from the Fed, and the BoE gave the impression that the central banks are done with the tightening cycle. The BoE kept interest steady but sharply downgraded its growth outlook, and Governor Bailey warned that officials “should not maintain monetary policy restrictively for excessively long. Also, the Fed left rates unchanged but retreated that the recent increase in yields has had a tightening impact on financial conditions. Still, oil prices remained near two-month lows on expectations of lower demand and as markets continued to bet against risks that Israel’s conflict with Gaza could have larger-scale repercussions that impact crude oil supply. Weaker-than-expected manufacturing activity data in the US and China also clouded the demand outlook in two of the world’s largest oil consumers.
