Crude oil prices, indexed to the dollar, were up at trading start on Thursday with the U.S. Federal Reserve's indecision to raise interest rates this year resulting in the loss in value of the U.S. dollar.
After the Fed released its January meeting minutes, international benchmark Brent crude gained 1.1 percent on Wednesday to close at $67.17 per barrel. It traded at $67.15 a barrel at 0620 GMT on Thursday.
American benchmark West Texas Intermediate (WTI) increased 2 percent on Wednesday to finish at $57.20 a barrel. It traded at $57.36 per barrel at the same time with a 0.3 percent daily gain.
After making four rate hikes in 2018, the Federal Open Market Committee (FOMC) decided to put a break on raising its benchmark interest rate in its January meeting.
While the word 'patient' was used 12 times in the minutes, the members of the FOMC looked undecided about why the central bank should wait before making more rate hikes.
'... Several of these participants argued that rate increases might prove necessary only if inflation outcomes were higher than in their baseline outlook. Several other participants indicated that, if the economy evolved as they expected, they would view it as appropriate to raise the target range for the federal funds rate later this year,' the minutes said.
Some members of the FOMC, meanwhile, noted that the slowdown in global economic growth, particularly in China and Europe, had been significant leading to a patient monetary policy stance, according to the minutes.
The central bank's action taken on Jan. 20 in pausing rate hikes drove the U.S. dollar down against other major currencies in recent weeks.
Since crude oil prices are indexed to the American dollar, a weaker greenback has increased the demand for oil around the world.
The global oil market will focus Thursday on the weekly change in crude oil inventories and production in the U.S., which will be announced by the Energy Information Administration (EIA) at 2300 GMT.
While crude oil stocks in the U.S. rose by 3.6 million barrels for the week ending Feb. 8, it is now expected to increase by 3.1 million barrels for the week ending Feb. 15.
The world's top oil producer's crude output remains at a record high level of 11.9 million barrels per day since the week ending Jan. 16, according to the EIA.
By Ovunc Kutlu
Anadolu Agency
energy@aa.com.tr