Crude oil futures ended higher for second straight session on Thursday amid rising risk appetite after the European Central Bank and the Bank of Canada cut interest rates, and on rising optimism the Fed will lower rate in September. It is widely expected that a rate cut by the U.S. central bank could stimulate economic activity and boost oil demand. The European Central Bank (ECB) has cut interest rate for the first time since September 2019. The ECB today cut key rates by 25 basis points and raised inflation forecasts for 2024 and 2025. The ECB has raised the headline inflation outlook for 2024 to 2.5% from 2.3% previously and upped the forecast for 2025 to 2.2% from 2%.
Benchmark crude oil futures for July delivery surged $1.48 or nearly 2% to settle at $75.55 a barrel on the New York Mercantile Exchange. Brent crude for August delivery was up $1.50 or about 1.93% to $79.90 per barrel on London's Intercontinental Exchange.