Oil prices stable as market awaits data on inventories, economy
2023.09.11 22:50
© Reuters. A general view of the Phillips 66 refinery, as seen from Rodeo, California, the oldest oil refining town in the American West, U.S. March 2, 2023. REUTERS/Nathan Frandino
By Stephanie Kelly
(Reuters) – futures hovered just above $90 a barrel on Tuesday, as investors awaited a slew of macroeconomic data due later this week that could indicate whether Europe and the U.S. continue to hike interest rates.
The international benchmark Brent contract dipped 6 cents to $90.58 a barrel at 0003 GMT, while U.S. West Texas Intermediate crude futures edged 2 cents lower to $87.27.
Brent reached $90 a barrel last week for the first time in 10 months after Saudi Arabia and Russia announced they would extend voluntary supply cuts of a combined 1.3 million barrels per day (bpd) until the end of the year.
Investors awaited industry data on stockpiles due at 2030 GMT on Tuesday. Crude inventories were expected to have fallen by about 2 million barrels in the week to Sept. 8, a preliminary Reuters poll showed on Monday. [EIA/S]
Also looking ahead, U.S. August consumer price index (CPI) data due on Wednesday could provide a steer on whether more increases to interest rates will be on the cards.
The European Central Bank will announce its interest rate decision on Thursday. The European Commission on Monday forecast the euro zone to grow more slowly than previously expected in 2023 and 2024.
The International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) also will release monthly reports this week.
The IEA last month lowered its 2024 forecast for oil demand growth to 1 million bpd, citing lackluster macroeconomic conditions. OPEC’s August report, meanwhile, kept its 2.25 million bpd demand growth forecast for 2024 unchanged.
