Oil prices edges higher ahead of US CPI; remain near 2-week lows

Investing.com — Oil prices rose slightly Wednesday, hovering just above two-week lows after the OPEC cut its demand outlook again, while focus rturned to inflation data out of the US.

AT 07:50 ET (12:50 GMT), Brent oil futures rose 0.1% to $71.99 a barrel, while West Texas Intermediate crude futures gained 0.2% to $68.23 a barrel.

Oil prices were nursing steep losses over the past three sessions after fresh fiscal measures from China largely underwhelmed, while fears of supply disruptions in the Gulf of Mexico eased as tropical storm Rafael appeared to be dissipating. 

OPEC cuts 2024, 2025 demand outlook again 

The Organization of Petroleum Exporting Countries cut its outlook for global oil demand growth for a fourth consecutive month on Tuesday, citing persistent concerns over slowing demand in China and other major oil importers. 

The OPEC said in its monthly report that it expects global oil demand to grow by 1.82 million barrels per day in 2024, down by 107,000 bpd from the prior month’s forecast.

The cartel has steadily cut its outlook for demand amid persistent economic weakness in China, as well as concerns over a switch to cleaner fuels in other parts of the world.

But the cartel still holds a relatively optimistic view on demand growth when compared to other energy watchdogs, especially the International Energy Agency. 

The IEA is set to release a monthly report on Thursday, after also steadily cutting its demand outlook this year.

US CPI in focus 

Markets also turned skittish over the U.S. economy, ahead of key consumer inflation data due later in the day.

The reading is widely expected to factor into the Federal Reserve’s outlook on interest rates, amid uncertainty over the potential impact on inflation of the policies of the incoming President Donald Trump.   

Speculation over Trump’s planned policies have already pushed the greenback to a four-month high, hurting commodities, like oil, which are denominated in the US currency. 

Additionally, Trump’s expected pick for secretary of state, U.S. Senator Marco Rubio, is known for his hardline stance on Iran, China and Cuba.

Rubio’s appointment could be bullish for prices, as his hawkish view on Iran could see sanctions enforced, potentially removing 1.3 million barrels per day from global supply.

Also in focus, is the American Petroleum Institute’s crude stockpiles data, with the weekly number due a day later than usual after Monday’s Veterans’ day holiday in the US.

(Ambar Warrick contributed to this article.)

 
 

This post is originally published on INVESTING.

  • Related Posts

    COP29 host urges collaboration as deal negotiations enter final stage

    By Valerie Volcovici and Nailia Bagirova BAKU (Reuters) – COP29 climate summit host Azerbaijan urged participating countries to bridge their differences and come up with a finance deal on Friday,…

    Gold prices rise, set for strong weekly gains on Russia-Ukraine jitters

    Investing.com– Gold prices rose in Asian trade on Friday and were headed for a strong weekly gain as increased tensions between Russia and Ukraine sparked a broad rush into traditional…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    USDСAD: Elliott Wave Analysis and Forecast for 22.11.24 – 29.11.24

    • November 22, 2024
    USDСAD: Elliott Wave Analysis and Forecast for 22.11.24 – 29.11.24

    CMC Markets Wrote Off £2.8M Investment in Blockchain Firm Strike X

    • November 22, 2024
    CMC Markets Wrote Off £2.8M Investment in Blockchain Firm Strike X

    COP29 host urges collaboration as deal negotiations enter final stage

    • November 22, 2024
    COP29 host urges collaboration as deal negotiations enter final stage

    Forex Takes Trump’s Statements Too Seriously. Forecast as of 22.11.2024

    • November 22, 2024
    Forex Takes Trump’s Statements Too Seriously. Forecast as of 22.11.2024

    Short-term Analysis for Oil, Gold, and EURUSD for 22.11.2024

    • November 22, 2024
    Short-term Analysis for Oil, Gold, and EURUSD for 22.11.2024

    Short-term Analysis for BTCUSD, XRPUSD, and ETHUSD for 22.11.2024

    • November 22, 2024
    Short-term Analysis for BTCUSD, XRPUSD, and ETHUSD for 22.11.2024