Oil prices pick up on U.S. inflation slowdown

NEW YORK, July 12 (Xinhua) -- Crude oil futures prices extended gains on Wednesday thanks to optimism from cooling down in U.S. inflation and less worries on impacts of monetary tightening.

The West Texas Intermediate (WTI) for August delivery grew 92 cents, or 1.23 percent, to settle at 75.75 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for September delivery added 71 cents, or 0.89 percent, to settle at 79.40 U.S. dollars a barrel on the London ICE Futures Exchange.

U.S. consumer price index (CPI) registered year-on-year growth of 3 percent in June, the lowest since March 2021, according to data issued by the U.S. Bureau of Labor Statistics on Wednesday.

The continuous slowdown in U.S. inflation led to reduction in expectations of additional monetary tightening by the Federal Reserve and worries on negative impacts on oil consumption.

Traders bet on a less hawkish Fed, which is bullish for oil, said Vladimir Zernov, analyst with market information supplier FX Empire.

Zernov added that the oil inventory report by the U.S. Energy Information Administration (EIA) did not have a significant impact on market dynamics.

U.S. commercial crude oil inventories posted a week-on-week increase of 5.9 million barrels last week, higher than market expectations, according to data issued by the EIA on Wednesday.

Meanwhile, U.S. distillate inventories increased by 4.8 million barrels week on week with gasoline inventories falling slightly.