WTI remains stable around $80.60, just below the annual high reached on Thursday

• WTI stops after the strong rise of the previous day, which took it to a new annual high.
• The Fed's restrictive expectations and China's economic problems act against the oil price.
• The improving demand outlook should limit any significant corrective decline.

US crude oil prices West Texas Intermediate (WTI) ranged within a tight range, just above $80.00, at the start of the European session on Friday and remain near the highest level since November 6 touched the previous day.

He Higher-than-expected US Producer Price Index (PPI) suggested the Federal Reserve (Fed) could maintain its higher interest rate talk for longer to reduce inflation. This is expected to slow economic activity and reduce fuel demand, which, along with concerns about China's slowdown, acts against crude oil prices. However, the downward trend is supported by the sharp decline in US inventories, drone attacks on Russian refineries and the increase in energy demand forecasts.

The Energy Information Administration (EIA) reported Wednesday that US crude stockpiles unexpectedly fell by about 1.5 million barrels in the week to March 8. On the other hand, one of the most serious drone attacks in recent months against the Russian energy sector caused a fire at Rosneft's largest refinery on Wednesday. On the other hand, The International Energy Agency raised its oil demand growth forecast for 2024 for the fourth time since Novemberamid supply disruptions caused by Houthi attacks in the Red Sea.

This comes after OPEC+ members decided to extend production cuts of 2.2 million barrels a day into the second quarter and support prospects for further appreciation in crude oil prices. However, black gold remains on track for strong weekly gains as market attention now shifts to the highly anticipated two-day FOMC policy meeting, which begins next Tuesday.