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U.S. light crude oil prices surged more than 2% per barrel following remarks from Federal Reserve Chair Jerome Powell that hinted at forthcoming interest rate cuts. Brent crude futures rose by $1.80, or 2.33%, to settle at $79.02 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by $1.82, or 2.49%, closing at $74.83 per barrel. The Federal Reserve's pivot is genuine, stated Phil Flynn, Senior Analyst, Price Futures Group. It's influencing all commodities. Earlier in the week, both oil benchmarks had plummeted to their lowest levels since early January, driven by the U.S. government's substantial downward revision of job additions for the year, which stoked recession fears. Powell supported a more accommodative monetary policy, expressing concerns over further cooling in the job market. He also voiced optimism that inflation was nearing the Fed's 2% target. The risks of higher inflation have lessened, while the risks to employment have grown, Powell remarked during his keynote speech at the Kansas City Fed's annual economic conference in Jackson Hole, Wyoming. It?s time for policy adjustments, with the timing and pace of rate cuts depending on incoming data and the evolving economic outlook. The U.S. dollar index dipped to around 101.45 ahead of Powell's speech. A weaker dollar typically boosts demand for dollar-denominated commodities, such as oil, among investors using other currencies. Morgan Stanley noted that a recent drawdown in oil inventories has provided some support to prices. Currently, the oil market remains tight, with inventories decreasing by approximately 1.2 million barrels per day over the last four weeks. We expect this trend to continue through the third quarter, the bank stated. Despite the rally, concerns linger about global oil demand, particularly due to recent data from China indicating a struggling economy and decreased demand from refiners. Additionally, ongoing ceasefire negotiations between Israel and Hamas in Gaza have helped ease supply fears, further affecting oil prices. Meanwhile, U.S. energy companies reduced the number of active oil and natural gas rigs for a second consecutive week, according to energy services firm Baker Hughes. The number of oil rigs remained steady at 483, while gas rigs fell by one, bringing the total to 97. (ET)