LONDON—Global oil benchmark Brent hovered above $80 a barrel on Thursday after U.S. inflation data implied interest rates in the world’s biggest economy are close to their peak.
Data released on Wednesday showed U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside.
Markets expect one more interest rate rise before the U.S. rate-hiking cycle has likely peaked. Higher rates can slow economic growth and reduce oil demand.
Oil prices have rallied by around 12 percent in two weeks, primarily in response to supply cuts from top producers Saudi Arabia and Russia, Craig Erlam, senior market analyst at OANDA, said….