London/Washington, Aug. 13 (SANA) Oil prices edged lower on Thursday after forecasts pointed to weaker global demand, while gold climbed to its highest level in more than two months as slowing U.S. inflation reduced expectations of further interest rate increases.
Brent crude futures fell 0.1% to $88.88 a barrel, while U.S. West Texas Intermediate crude slipped 0.2% to $83.06, according to CNBC.
The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday lowered its forecast for global oil demand growth in 2026 to 580,000 barrels per day.
The International Energy Agency, meanwhile, forecast oil consumption would contract by 1.6 million barrels per day this year, citing fuel supply constraints and higher prices stemming from the war in the Middle East.
Oil prices also came under pressure after U.S. commercial crude inventories posted their biggest weekly increase since January 2023 as exports declined, according to data released Wednesday by the U.S. Energy Information Administration.
However, concerns over potential supply disruptions and stalled talks between Iran and the United States aimed at ending the war helped keep crude prices relatively elevated.
Gold rises as U.S. inflation slows
Gold climbed to its highest level in more than two months on Thursday after U.S. inflation data eased expectations that the Federal Reserve would raise interest rates at its next meeting.
Spot gold rose 0.6% to $4,433.62 an ounce, while U.S. gold futures for December delivery gained 0.6% to $4,493, Reuters reported.
The gains came after annual U.S. inflation slowed to 3.4% in July, prompting investors to scale back expectations of another interest rate increase. Markets were also awaiting U.S. producer price data for further indications on the inflation outlook.
Among other precious metals, silver gained 1% to $65.91 an ounce, while platinum and palladium posted more modest increases.
Gold is generally considered a hedge against inflation and economic uncertainty and can benefit from lower interest rates, which reduce the opportunity cost of holding the non-yielding metal.
N.J/ABD
