Oil steady as investors await US inflation data, OPEC report

Oil steady as investors await US inflation data, OPEC report
Oil steady as investors await US inflation data, OPEC report

Oil prices were little changed on Tuesday as investors waited on data this week, including US inflation indicators and a monthly report from the Organization of the Petroleum Exporting Countries.

Brent crude futures fell 18 cents to $83.18 a barrel at 0808 GMT, while US West Texas Intermediate (WTI) crude futures also lost 18 cents to $78.94 a barrel.

On Monday, Brent marked its biggest daily gain in more than two weeks, and WTI in more than a month, on signs of improving demand in the US and China, the world’s top two oil consumers.

“Oil prices were slightly higher overnight but remain in a broad holding pattern over the past week, with the lead-up to the upcoming US inflation data keeping some reservations in place,” said Yeap Jun Rong, market strategist at IG.

Investors are watching the US Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates, which could spur economic growth and therefore oil demand.

“Ahead, the OPEC monthly oil report will be in focus to provide any updates on global oil demand, with some eyes on whether the previous optimistic guidance around the summer travel season will continue to hold,” said Yeap.

The latest OPEC monthly oil market report is due later on Tuesday.

The market is also watching wildfires in remote western Canada that could disrupt the country’s oil supply.

Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country’s oil sands industry.

“Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of over 1 million bpd oil production,” said Goldman Sachs analysts in a note.

No operational disruptions had been reported. But Alex Hodes, analyst at energy brokerage StoneX, said Canada’s 3.3 million barrel per day (bpd) production capacity is “very likely to be affected.”

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