Oil prices rose more than 1%, boosted by news of a brief shutdown of the Keystone pipeline, which carries Canadian oil to the United States.
Operator TC Energy Corp. confirmed Keystone’s integrity in a statement, adding that service was temporarily suspended “as a precautionary measure” and that no crude was released.
Oil also continues to be supported by increased expectations of easing the Fed's monetary policy after Central Bank Governor Powell said that the Fed is approaching the confidence needed to start lowering interest rates. Markets are still predicting that at least four 25 basis point interest rate cuts will be approved by the Fed this year, with the first coming in June.
Experts also pointed to signs of an increase in demand for petroleum products from the world's largest consumers - the United States and China. According to official data, gasoline stocks in the United States decreased by 4.5 million barrels last week, and distillate stocks fell by 4.1 million barrels, exceeding economists' forecasts. Meanwhile, in China, crude oil imports increased by 5.1% per annum in the first two months of 2024, and fuel consumption in India increased by 5.7% in February amid strong manufacturing activity.
The negative dynamics of the US currency also contributed to the increase in oil prices. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) reached its lowest value since January 15. Since the beginning of the week, the index has fallen by 0.99%.