Oil prices hold steady as investors look to upcoming US inflation data and OPEC report
In the bustling world of oil trading, prices remained relatively stable on Tuesday as traders kept a close eye on potential market-moving events. Brent crude futures saw a slight increase of 4 cents, reaching $83.40 a barrel, while US West Texas Intermediate crude futures climbed 5 cents to $79.17 a barrel, according to Reuters.
Signs of improving demand drive prices higher
The previous day had seen the benchmark contracts settling higher, fueled by positive indicators of growing demand in the US and China, the world’s top two oil consumers.
Market strategist at IG, Yeap Jun Rong, noted, “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.”
Focus on US inflation data and OPEC report
Investors are eagerly anticipating the US Consumer Price Index data release on Wednesday, as it could provide insights into the Federal Reserve’s future decisions on interest rates.
Additionally, all eyes are on the OPEC monthly oil report for updates on global oil demand and the impact of the summer travel season.
Wildfires in Canada add to market concerns
Amidst all this, wildfires in western Canada are posing a potential threat to the country’s oil supply. Although no operational disruptions have been reported, analysts are wary of the impact on the nation’s 3.3 million barrel per day production capacity.
Iraq’s oil minister’s comments stir up market chatter
Adding to the mix is the market’s reaction to statements from Iraq’s oil minister, Hayyan Abdul Ghani. His comments over the weekend regarding voluntary output cuts by OPEC+ members have sparked speculation and uncertainty in the market.
The rollercoaster of oil trading continues as traders navigate through various economic indicators and geopolitical events to make informed decisions in this ever-evolving landscape.