Oil prices gain on lower supply, slower inflation in America

Oil prices rose today, Friday, with the support of the scarcity of supply amid tension in Libya and Nigeria and the decline in the pace of inflation in the United States, which markets hope will put an end to raising interest rates in the largest economy in the world.

According to Reuters, Brent crude futures rose 27 cents, or 0.3 percent, to $81.63 a barrel by 0028 GMT.

US West Texas Intermediate crude futures rose 35 cents, or 0.5 percent, to $77.24.

US consumer prices rose slightly in June, posting the slowest annual pace of increase in more than two years, as inflation continued to ease.

Producer prices also rose slightly in June, and the annual increase was the smallest in nearly three years

Both indicators give the markets hope that the US Federal Reserve is closer to ending the faster monetary policy tightening cycle since the 1980s.

“Positive risk sentiment swept through the markets, driven by more data showing a slowdown in US price pressures, raising hopes that the Federal Reserve may have just one more time to finish interest rate hike,” ANZ said in a note to clients on Friday.

On Thursday, a number of oil fields in Libya were shut down as a local tribe protested the kidnapping of a former minister. Separately, Shell has halted shipments of Nigerian Forcados crude oil due to a possible leak at the station.