The upcoming US inflation data is now in focus, oil prices rebounded, reaching multi-month highs as supply concerns.
Brent crude surged to $87.81, its highest since Jan. 23, while West Texas Intermediate (WTI) rose to $84.65, a level not seen since November 2022.
“Oil prices have been resilient to a weak economic showing out of China in recent weeks, with market participants choosing to place their focus on the tighter supplies conditions from Saudi Arabia and Russia’s output cuts to continue their unwind from previous bearish positioning,” noted Yeap Jun Rong, market analyst at IG. Saudi Arabia intends to prolong its voluntary 1 million barrels per day production cut into September, while Russia plans to reduce oil exports by 300,000 bpd next month.
The focus is on the upcoming July Consumer Price Index (CPI) from the US, scheduled for Thursday, which will influence the Federal Reserve’s future monetary policy.
Market expectations include a slight year-over-year acceleration in the CPI, with consumer prices expected to increase by 0.2% month-to-month basis, matching June’s rate.
U.S. crude inventories rose significantly, surpassing analysts’ expectations. Data from the U.S. Energy Information Administration showed a 5.9 million barrel increase in the last week, bringing the total to 445.6 million barrels.
Last week, U.S. crude oil exports declined, reaching 2.36 million barrels per day, the most substantial drop on record, as indicated by the data.
Source: Bahrain News Agency
