Oil pushes higher as US stockpile draw and US Fed’s plan buoy mood

Oil advanced after US stockpiles fell and the Federal Reserve signaled that it would cut interest rates this year, boosting risk appetite across wider markets and bruising the dollar.

Global benchmark Brent rose above $86 a barrel, climbing for the third time four sessions, while West Texas Intermediate was near $82. Nationwide US crude inventories dropped for a second week, with stockpiles below the five-year seasonal average. A large draw was also logged for gasoline.

Federal Reserve officials maintained their outlook for three interest-rate cuts this year after holding borrowing costs steady on Wednesday. A gauge of the US dollar fell for a second day, boosting the allure of commodities priced in the currency.

Crude has posted a double-digit percentage advance this year, breaking out of a narrow range in recent weeks, as OPEC+ extended production cuts to rebalance the market. Geopolitical tensions including Ukrainian drone attacks on Russian refineries and rising transport costs due to attacks on ships in the Red Sea have also supported prices, although gains have been limited by surging supply from outside the cartel.