Crude oil prices recovered from declines from the previous trading session to open with gains on Thursday following the U.S. Federal Reserve's action to cut its interest rate prompted a lower U.S. dollar.
The U.S. Federal Reserve lowered its benchmark interest rate by 25 basis points on Wednesday, marking the third rate cut this year.
While only two of the Federal Open Market Committee members voted against the cut, the Fed Chairman Jerome Powell hinted that the central bank would hold rates unchanged in the near future.
The current level is "likely to remain appropriate," Powell said in a press conference, adding "If that changes, the Fed will respond accordingly."
After the rate cut, the U.S. dollar index, which includes a basket of currencies like the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, closed Wednesday with a 0.24% decline. The index was down 0.14% at 0730 GMT on Thursday.
Oil prices, which are indexed to U.S. dollar, showed gains on Thursday as a cheaper greenback triggered an increase in overall oil demand worldwide.
The price of international benchmark Brent crude was trading at $60.52 per barrel at 0730 GMT on Thursday for a 0.5% gain after it closed the previous session at $60.22 a barrel.
American benchmark West Texas Intermediate (WTI) was at $55.33 a barrel at the same time for a 0.5% increase after ending the previous day at $55.06 per barrel.
On Wednesday, WTI fell 0.86% and Brent crude plummeted 2.22%, after the U.S. and China failed to sign a trade deal, triggering a fall in global oil demand.
By Ovunc Kutlu