Oil recovers from inflation-driven plunge | Reuters

Oil recovers from inflation-driven plunge | Reuters

Oil prices rose above $83 a barrel on Thursday, recovering from sharp falls triggered by concerns that rising U.S. inflation could prompt Washington to release more strategic crude stockpiles to drive down prices.

Brent crude futures gained 70 cents, or 0.85%, to $83.34 a barrel at 0956 GMT. U.S. West Texas Intermediate (WTI) futures rose 79 cents, or 1%, to $82.13.

Wednesday's data showing U.S. inflation increased at the fastest rate in 30 years had pushed the dollar higher and sent Brent and WTI crude down by 2.5% and 3.3% respectively, with further pressure applied by a rise in U.S. oil stocks after a government release of some strategic reserves.

"Crude prices are trying to find their footing after yesterday's slide as runaway inflation in America is adding pressure on the Biden administration to tap the Strategic Petroleum Reserve (SPR)," said Edward Moya, senior analyst at OANDA.