Oil continues to rise

Oil held at its highest level since November, buoyed by strong U.S. gasoline demand and signs the Federal Reserve will cut interest rates this year. Brent crude traded around $83 a barrel after rising 1.1 percent on Wednesday, while U.S. crude traded above $79. U.S. gasoline inventories fell for a fifth time last week, while refiners on the Gulf Coast were building up crude inventories in a sign they are preparing to work hard ahead of the busiest driving season. Oil has risen further this year, weighed down by tensions in the Middle East, higher shipping costs due to attacks in the Red Sea and OPEC+ cuts, but gains were limited by strong supply from outside the cartel and disappointing growth in China. Prices also got an extra boost after Fed Chair Jerome Powell said borrowing costs would likely be cut at some point this year and the dollar would fall to its lowest level in a month. “Supply dynamics, China risks and geopolitics remain the main levers for oil,” said Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank in Singapore. Meanwhile, Houthi missile attacks on a commercial ship in the Red Sea resulted in the first confirmed deaths of crew members since the militant group began its attacks on shipping along the vital trade route late last year. Three people were killed, according to US Central Command.