© Archyde.com. Two pumps work in an oil field outside Sodron, France, on February 6, 2023. Photograph: Pascal Rossignol/Archyde.com.
(Archyde.com) – It rose on Tuesday as market participants assessed the OPEC + decision to cut production, which would reduce supplies in the market, in exchange for concerns regarding raising interest rates, which is likely to hurt demand.
Investors are awaiting this week a group of reports regarding inflation, supply and demand in the oil market, which may determine the direction of the market.
It rose eight cents to $84.26 a barrel by 0004 GMT, while West Texas Intermediate crude rose 11 cents to $79.85 a barrel.
Oil prices fell on Monday, following rising for three consecutive weeks, following US jobs data indicated a lack of employment, which raised expectations of another increase in interest rates by the Federal Reserve (the US central bank), which might lead to a decline in demand for oil.
And it reinforced expectations of a rate hike on Monday and Tuesday, which may put pressure on oil prices, as the rise of the dollar makes oil more expensive for buyers holding other currencies.
Oil futures have risen more than five percent since the OPEC + group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, announced last week a new round of production cuts starting in May, surprising the markets.
As for supply in the United States, US crude inventories data is scheduled for release on Tuesday. Five analysts polled by Archyde.com predicted that crude inventories fell by an average of 1.3 million barrels during the week ending April 7.
The US inflation report is due out on Wednesday and is expected to help investors determine the path of interest rates in the short term.
A monthly report is also expected from OPEC on Thursday and the International Energy Agency on Friday to update forecasts for oil demand and supply.
(Prepared by Mahmoud Abdel-Gawad for the Arabic Bulletin)
