Oil prices remained relatively unchanged today as conflicting factors influenced the market. Upward pressure came from a recent decline in U.S. crude oil inventories, indicating strong domestic demand. However, this was countered by concerns about the global economy and potential interest rate hikes.
The upcoming OPEC+ meeting on June 2nd is a key event to watch. The group may decide to maintain production cuts to support prices, potentially leading to an increase. However, rising interest rates in the U.S. could dampen economic activity and reduce demand for oil.
Investors are closely monitoring inflation data due later this week, which could influence the Federal Reserve’s decision on future interest rates. This, in turn, will impact oil prices as higher borrowing costs tend to decrease demand.
Overall, the oil market is currently in a wait-and-see mode, with both positive and negative factors at play. The outcome of the OPEC+ meeting and upcoming economic data will likely determine the future direction of oil prices.
Source: Reuters