Oil steady as investors await US inflation data, OPEC report

14-05-2024 11:17 AM

Ammon News - Oil prices were little changed on Tuesday as investors eyed fresh drivers, including upcoming U.S. inflation indicators and a monthly report from the Organization of the Petroleum Exporting Countries this week.

Brent crude futures inched 11 cents higher to $83.47 a barrel at 0630 GMT, while U.S. West Texas Intermediate crude futures rose 9 cents to $79.21 a barrel.

The benchmark contracts settled higher on Monday on signs of improving demand in the U.S. and China, the world's top two oil consumers.

"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," said Yeap Jun Rong, market strategist at IG.

Investors are watching the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates, which could spur economic growth and therefore oil demand.

"Ahead, the OPEC monthly oil report will be in focus to provide any updates on global oil demand, with some eyes on whether the previous optimistic guidance around the summer travel season will continue to hold," said Yeap.

The latest OPEC monthly oil market report is due later on Tuesday.

The market is also watching wildfires in remote western Canada that could disrupt the country's oil supply.

Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country's oil sands industry.

"Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of over 1 million bpd oil production," said Goldman Sachs analysts in a note.

No operational disruptions had been reported. But Alex Hodes, analyst at energy brokerage StoneX, said Canada's 3.3 million barrel per day (bpd) production capacity is "very likely to be affected".


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