Oil Holds Steady Amid US Inflation and OPEC Report Buzz

News Desk1 week ago

At 03:15 GMT, U.S. West Texas Intermediate crude prices increased by 5 cents to $79.17 a barrel, while Brent crude futures increased by 4 cents to $83.40 a barrel.

As the world’s two largest oil consumers, China and the United States, show signs of strengthening demand, the benchmark contracts ended the day higher on Monday.

Yeap Jun Rong, an IG market strategist, stated that “oil prices were slightly higher overnight but remain in a broad holding pattern over the past week, with the lead-up to the upcoming U.S. inflation data keeping some reservations in place.”

Read more:Oil Markets Plunge as Dollar Surges on Anticipation of Higher Rates

Ahead of the Federal Reserve’s potential interest rate reduction, investors are closely observing the U.S. Consumer Price Index data, which is scheduled for release on Wednesday.

“The OPEC monthly oil report is expected to provide insights into global oil demand going forward. It will be closely watched to see if the optimistic forecast for the summer travel season holds true,” Yeap stated.

According to OPEC’s website, the most recent monthly report on the oil market is expected later on Tuesday.

The market is also keeping an eye on wildfires in Canada’s remote western regions, which have the potential to impair the nation’s oil supply.

On Monday, firefighters were battling to put out two fires in Alberta and one in British Columbia, which were close to the center of the nation’s oil sands sector.

There have been no reported disruptions to operations. However, energy brokerage StoneX analyst Alex Hodes stated that Canada’s 3.3 million barrel per day production capacity is “highly likely to

According to a statement from ANZ analysts, the market also kept responding to optimistic remarks made over the weekend by Iraq’s oil minister, Hayyan Abdul Ghani.

At its upcoming meeting on June 1, Ghani stated on Sunday that Iraq would respect the voluntary output cutbacks made by OPEC+, which is made up of Russia, the Organization of the Petroleum Exporting Countries, and other non-OPEC producers.

That was a 180-degree turn from his remarks on Saturday that Iraq would not accept any more output cutbacks and that it had already made enough voluntary reductions.

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