Oil prices rise as markets await inventories and economic data

2023-09-12 08:06:36

Offshore oil platform (iStock)

Oil prices

Brent reached $90 last week for the first time in 10 months

Dubai – Al Arabiya.net

Published on: September 12, 2023: 08:26 AM GST Last updated: September 12, 2023: 12:06 PM GST

Brent crude futures hovered just above $90 a barrel on Tuesday, as investors awaited a series of macroeconomic data scheduled for later this week, which could indicate whether Europe and the United States will continue raising interest rates.

By 07:40 GMT, the price of Brent crude, the global benchmark, rose 8 cents to $90.72 a barrel, while US West Texas Intermediate crude futures increased 18 cents to $87.45.

Brent reached $90 a barrel last week for the first time in ten months after Saudi Arabia and Russia announced that they would extend voluntary supply cuts amounting to a combined 1.3 million barrels per day until the end of the year, according to Archyde.com.

Investors are awaiting data from the sector regarding US crude inventories scheduled to be released on Tuesday at 20:30 GMT. A preliminary poll conducted by Archyde.com on Monday showed that crude inventories are expected to decline by about two million barrels in the week ending September 8.

US August CPI data due on Wednesday may provide an indication of whether further interest rate hikes will be adopted.

The European Central Bank announces its interest rate decision on Thursday. The European Commission predicted on Monday that growth in the euro zone in 2023 and 2024 will be slower than previously expected.

The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are also scheduled to issue their monthly reports this week.

Last month, the agency lowered its forecast for oil demand growth in 2024 to 1 million barrels per day, citing lackluster macroeconomic performance.

Meanwhile, OPEC’s August report left its demand growth forecast at 2.25 million barrels per day in 2024 unchanged.