While the market awaits data on inventories and the economy, oil prices are unchanged in early trade

12 Sep 2023 , 09:59 AM

As investors awaited a barrage of macroeconomic data due later this week that could suggest whether Europe and the U.S. continue to boost interest rates, Brent oil futures traded slightly above $90 a barrel on Tuesday.

The benchmark Brent contract for international oil prices fell 6 cents to $90.58 per barrel, while West Texas Intermediate crude futures down 2 cents to $87.27.

Following Saudi Arabia and Russia’s announcement that they will extend their voluntary supply cutbacks of a combined 1.3 million barrels per day (bpd) through the end of the year, Brent surpassed $90 per barrel last week for the first time in ten months.

Investors awaited sector data on U.S. crude stockpiles, which was scheduled for release at 2030 GMT on Tuesday. According to a preliminary Reuters poll released on Monday, crude stocks were predicted to have decreased by approximately 2 million barrels in the week leading up to September 8. 

Looking ahead, the U.S. consumer price index (CPI) statistics for August, which are due on Wednesday, may indicate whether further interest rate rises are anticipated.

On Thursday, the European Central Bank will make its interest rate decision public. On Monday, the European Commission predicted that the euro zone’s growth in 2023 and 2024 would be slower than originally anticipated.

This week will also see the publishing of monthly reports from the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC).

The IEA reduced its 1 million bpd prediction for oil demand growth in 2024 last month, blaming weak macroeconomic conditions. In contrast, OPEC’s August report kept its prediction for 2024 demand increase of 2.25 million bpd unchanged.

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