Oil prices experienced a slight decline on Monday, continuing the downward trend observed last week, while market participants anticipate forthcoming inflation data.
“The West Texas Intermediate contract for April lost 40 cents, or 0.51%, to $77.61 a barrel. The Brent contract for May shed 35 cents, or 0.43%, to $81.73 a barrel,” reported sources.
Last week, both U.S. crude and the global benchmark suffered losses of 2.45% and 1.76%, respectively. The dip was attributed to subdued demand in China and remarks from the International Energy Agency (IEA) suggesting ample supply in the market for the year.
Traders are eagerly awaiting the release of consumer and producer price indexes scheduled for Tuesday and Thursday, seeking clues about the potential timing of interest rate adjustments by the Federal Reserve.
“It’s anticipated that the Fed might consider cutting rates in June,” noted analysts. Lower interest rates traditionally stimulate economic expansion, thus boosting demand for crude oil.
Additionally, this week, both OPEC and the IEA are set to publish their monthly oil market reports on Tuesday and Thursday, adding to the anticipation and market dynamics.
