Crude oil prices rise in early trade

11 Apr 2023 , 08:15 AM

As market players evaluated production curbs from OPEC+ that would tighten the global market against worries that more interest rate hikes could hamper demand, oil prices crept up on Tuesday.

Investors were anticipating a slew of studies on oil demand and supply, inflation, and other topics that were coming this week and may guide the market.

Brent crude had increased by 8 cents to $84.26 per barrel, while U.S. West Texas Intermediate had increased by 11 cents to $79.85 per barrel.

After three weeks of gains, oil prices dipped on Monday after U.S. jobs data showed a tight labour market, raising anticipation of another Federal Reserve rate hike that may reduce oil demand.

On Monday and Tuesday, rate rise expectations increased the U.S. dollar index, which decreased oil prices because a strong dollar makes commodities more expensive for holders of other currencies.

Since the Organization of the Petroleum Exporting Countries (OPEC) and allies, notably Russia, shocked the market last week with a fresh round of production restrictions starting in May, oil futures have increased by more than 5%.

On Tuesday, the sector is expected to release data on the country’s crude stockpiles. In the week leading up to April 7, crude stockpiles decreased by nearly 1.3 million barrels, according to an average estimate of five analysts surveyed by Reuters.

Investors may also be able to predict the near-term direction of interest rates with the aid of a U.S. inflation data that will be announced on Wednesday.

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