Wednesday – 21 Ramadan 1444 AH – 12 April 2023 CE Issue Number [16206]
London: «Asharq Al-Awsat»
While dealers in the oil markets are awaiting US inflation data, which is expected to be issued today, Wednesday, which may help investors determine the course of interest rates in the short term, in addition to the OPEC report on Thursday, oil prices rose slightly during trading yesterday, Tuesday, With dealers evaluating the decision of OPEC Plus to cut production, in exchange for concerns about raising interest rates, which is likely to hurt demand.
Brent crude rose 0.2 percent to $84.42 a barrel by 14:00 GMT, while West Texas Intermediate crude rose 0.5 percent to $80.15 a barrel.
A monthly report from the International Energy Agency is expected to be issued on Friday to update forecasts for oil demand and supply.
Oil prices fell in Monday’s session after rising for three consecutive weeks, after US job data indicated a shortage of employment, which raised expectations of another increase in interest rates by the Federal Reserve (the US Central Bank), which may lead to a decline in demand for oil. .
Expectations of a rate hike boosted the dollar index 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 5 percent since the OPEC Plus 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 from May until the end of this year.