Oil slightly up on hopes of US interest rate cut

Oil drilling rigs

Oil prices were marginally higher today, Aug. 15, supported by hopes that the monetary tightening cycle in the United States is nearing an end, which will boost consumption amid fears of a slowdown in global demand growth.

Brent crude was trading up 0.11% at $79.85 at 08:39 am Makkah time. WTI crude rose 0.16% to $77.10 a barrel.

Both grades suffered losses of more than 1% on Aug. 14, after official data showed that US oil inventories rose more than expected, indicating a weak demand.

However, a slowdown in the annual inflation rate in the US to 2.9%, the lowest rate since March 2021, boosted investors' hopes that the Federal Reserve will start cutting interest rates next month, which would boost overall demand, including for energy.