Oil Prices Stable as OPEC Maintains Demand Forecast, Investors Await U.S. Inflation Data

Oil prices remained largely unchanged on Tuesday as OPEC retained its global oil demand predictions, while investors awaited U.S. inflation indicators. Brent crude futures dipped 9 cents to $83.27 a barrel, and U.S. West Texas Intermediate (WTI) crude futures also dropped 9 cents to $79.03 a barrel. Despite this, both Brent and WTI had recently seen significant gains driven by signs of increasing demand in the U.S. and China.

Market strategist Yeap Jun Rong noted that while oil prices had edged up overnight, they remained in a holding pattern ahead of upcoming U.S. inflation data. Investors are particularly interested in the U.S. Consumer Price Index report scheduled for Wednesday, which could influence decisions by the Federal Reserve regarding interest rates, potentially impacting economic growth and oil demand.

OPEC, in its monthly report, maintained its outlook for robust global oil demand growth in 2024, with expectations of a rise of 2.25 million barrels per day (bpd). Additionally, concerns arose about wildfires in western Canada, which have the potential to disrupt oil supply. Firefighters are working to contain the blazes, particularly in Alberta near the oil sands industry, with past incidents triggering temporary shutdowns of oil production, according to analysts at Goldman Sachs.

Source: Reuters