By Laila Kearney
(Reuters) – Oil prices rose in early trading on Thursday as falling U.S. crude inventories signaled tighter supply and amid growing hopes the Federal Reserve will cut interest rates by the end of the year.
Brent crude futures for July were up 23 cents at $83.81 a barrel by 0033 GMT. U.S. West Texas Intermediate crude for June rose 29 cents to $79.28 a barrel.
Crude inventories fell last week by 1.4 million barrels to 459.5 million barrels, according to the Energy Information Administration, more than the expectations of analysts polled by Reuters, who had called for a drawdown of 1. 1 million barrels due to increased refinery activity. [EIA/S] [API/S]
Rising gasoline inventories, which unexpectedly rose by more than 900,000 barrels during the week to 228 million barrels, the EIA said, kept prices from rising.
Growing expectations that the U.S. central bank would cut interest rates by the end of the year after weaker-than-expected U.S. jobs data also boosted oil prices. Lower interest rates may increase crude oil spending.
However, hopes for a Middle East ceasefire, with the United States saying earlier in the week that negotiations on a Gaza ceasefire should help bridge gaps between Israel and the Hamas, prevented oil prices from rising.
(Reporting by Laila Kearney in New York; editing by Stephen Coates)
