Oil Prices Tread Water Ahead Of CPI Data, OPEC Report
Oil prices movedin Asian trade on Tuesday as traders turned cautious ahead of key U.S. inflation data that is expected to factor into while an OPEC monthly report was also in focus.
Prices were rangebound for a second straight session as a recentappeared to be running out of steam. Oil prices sharply last week after a potential Israel-Hamas ceasefire was rejected by Israel.
Israelits offensive against the Palestinian group, while Yemen’s Houthi group continued to attack vessels in the Red Sea. The latter was the clearest sign of the Israel-Hamas war potentially impacting global oil supplies, as crude shipments through the region were redirected and delayed.
Brent oil futures expiring in April rose 0.1% to $82.06 a barrel, while West Texas Intermediate crude futures rose 0.1% to $76.89 a barrel 20:58 ET (01:58 GMT). Both contracts were close to two-week highs, although trading volumes were held back by a week-long
CPI data, OPEC report set to provide more rate cut cues
Focus consumer price index (CPI) inflation data due The reading is expected to show that inflation eased further in January, but remained well above the Federal Reserve’s annual 2% target.now squarely on U.S.
The central bank had recently warned that sticky inflation was likely to keep interest rates higher forto sustained pressure on the economy in the coming months- a trend that could potentially dent oil demand.
The prospect of high-interest rates also pushed up the dollar, which pressured crude prices. A higher dollar oil demand by making crude more expensive for international buyers.
Inflation data from the UK and GDP data from the euro zone also on tap later in the latter expected to show a sustained decline in the world’s third-largest economy. Slowing economic growth in Europe has also cast uncertainty over oil
A monthly report from the Organization of Petroleum Exporting Countries (OPEC) is due later on Tuesday, and is expected to provide more cues the cartel’s
Theits production levels steady during a recent also said it expected oil demand to improve substantially in the next two years.
After the OPEC report, a monthly report from the International Energy Agency is also due on Thursday.