Oil Continues Decline from Previous Week, Anticipating Crucial Inflation and Crude Data

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.

Oil Continues Decline from Previous Week, Anticipating Crucial Inflation and Crude Data
Investors await inflation and crude oil data for insights into market trends. (Credits: iSTock)

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.

Oil Continues Decline from Previous Week, Anticipating Crucial Inflation and Crude Data
Expectations of Fed interest rate cuts persist, influencing oil market dynamics. (Credits: iSTock)

“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.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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