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Oil little changed on inflation indicators, OPEC report


Brent crude futures dropped 18 cents to $83.18 a barrel, while U.S. West Texas Intermediate crude futures shed 18 cents to $78.94 a barrel

Oil prices were little changed on Tuesday as investors awaited data this week, including U.S. inflation indicators and a monthly report from the OPEC.

Brent crude futures dropped 18 cents to $83.18 a barrel at 0808 GMT, while U.S. West Texas Intermediate crude futures also shed 18 cents to $78.94 a barrel.

On Monday, Brent marked its biggest daily gain in over two weeks, and West Texas Intermediate in more than a month, on indications of improving demand in the U.S. and China, the world’s top two oil consumers.

Oil prices were marginally higher overnight but remain in a broad holding pattern over the last week, with the lead-up to the upcoming U.S. inflation data keeping some reservations in place, according to Yeap Jun Rong, market strategist at IG.

Investors are watching the U.S. CPI data due on Wednesday for clues to when the Fed will consider cutting interest rates, which could spur economic growth and therefore oil demand.

Ahead, the OPEC monthly oil report will be in focus to provide any updates on global oil demand, with some eyes on whether the previous optimistic guidance around the summer travel season will continue to hold, Yeap said.

The latest OPEC monthly oil market report is due later on Tuesday.

The market is also watching wildfires in remote western Canada that could disrupt the country’s oil supply.

Firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country’s oil sands industry.

Spreading wildfires in Alberta oil sands impose downside risks to our constructive Canada production outlook as massive fires in the same region eight years ago triggered a temporary shutdown of more than 1 million bpd oil production, Goldman Sachs analysts stated in a note.

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