Oil advanced on Thursday, buoyed by Fed’s hints for a predicted rate reduction.

Brent crude rose by 75 cents at $81.30 per barrel, meanwhile crude futures ticked up by 84 cents to $76.69.

Since its announcement in November of the previous year, OPEC+ has voluntarily reduced its oil production by 2.2 million bpd.

Fed’s Chair Jerome Powell on Wednesday mentioned that interest rate had soared and will drop in the next months, with inflation keeping to drop and projections of steady expansion of the economy.

Demand was buoyed by reduction in interest rate and economic advance.

On the other hand, worker productivity figures saw an advance beyond projections for the Q4, containing unit labor costs and providing further ammunition to the Fed to combat inflation.

Also China has unveiled additional support policies aimed at mitigating the negative effects of the liquidation of Evergrande.

JPMorgan analysts predicted that in 2024, China would continue to be the main driver of the increase in the world's oil demand.