JABAR EKSPRES – Oil futures prices jumped in late trading Thursday (June 29) morning WIB, as a larger-than-expected drawdown in United States (US) crude stockpiles for the second consecutive week offset concerns that further interest rate hikes could slow economic growth and reduce oil demand.

West Texas Intermediate (WTI) crude oil futures for August delivery lifted US$1.86 or 2.75 percent to settle at US$69.56 a barrel on the New York Mercantile Exchange.

Brent crude oil futures for August delivery increased 1.77 US dollars, or 2.45 percent, to close at 74.03 US dollars a barrel on the London ICE Futures Exchange.

US crude inventories fell by 9.6 million barrels in the week ended June 23, much higher than analysts’ expectations for a modest decline, according to data released by the US Energy Information Agency (EIA) on Wednesday (June 28).

Meanwhile, US gasoline and distillate fuels showed slight increases of 0.6 million barrels and 0.1 million barrels, respectively.

In contrast, the American Petroleum Institute (API) on Tuesday (June 27) reported a decline of 2.408 million barrels of crude oil in US inventories for the week ending June 23.

But energy traders turned bullish quickly after the release of the EIA energy report and this report reset the oil outlook of market participants, who were too pessimistic, according to Edward Moya, senior market analyst at OANDA, a supplier of multi-asset online trading services.

“Overall, such a very solid number comes in the face of people saying that the market is oversupplied. This report could be a bottom (for oil prices),” said Phil Flynn, an analyst at Price Futures Group.

Investors remain cautious that rising interest rates could slow economic growth and reduce oil demand.

“If anyone is going to rain on the bull market it’s (US Federal Reserve Chairman) Jerome Powell,” Flynn said.