Oil climbed nearly 2% on ebbing over-supply fears, interest rate cuts optimism

International benchmarks for crude oil advanced for the second day in a row on Thursday, 6 June 2024 after Saudi said OPEC+ could pause or reverse oil output boost, which eased concerns that the cartel would allow the market to be oversupplied. 

Technical correction also helped reverse the previous losses. However, playing a bigger role in elevating oil futures was the growing optimism that the FED will follow the European Central Bank (ECB) to lower key interest rates. The ECB, on Thursday, decided to cut interest rates by 0.25%, marking the first cut since 2019.

Brent jumped $1.46 or 1.86% to close at $79.87/barrel.

WTI gained $1.48 or 2% to settle at $75.55/barrel.