As supply issues outweigh demand concerns, oil prices remain stable.
Tuesday’s oil prices were unchanged as fears that more potential US interest rate increases may reduce demand were offset by worry that a tropical storm off the US Gulf Coast might have an impact on supply.Tuesday’s oil prices were unchanged as fears that more potential US interest rate increases may reduce demand were offset by worry that a tropical storm off the US Gulf Coast might have an impact on supply.
By 00:32 GMT, Brent crude had down 2 cents to $84.40 per barrel, while US West Texas Intermediate had fallen 3 cents to $80.07. Important US economic statistics that may assist forecast interest rate trends for this year and the following year are expected by investors later this week. Jerome Powell, the chair of the Federal Reserve, suggested on Friday that more rate increases could be necessary to curb persistent inflation.
According to Refinitiv’s FedWatch tool, markets expect an 80 percent chance of the Fed keeping interest rates unchanged in September, but a rate rise in November is now viewed as being more likely, at about 56 percent. While moving toward Florida, Tropical Storm Idalia pounded western Cuba on Monday and nearly became a hurricane. On the eastern part of the US Gulf Coast, the storm may affect petroleum production and result in power disruptions.
The US personal consumption expenditures price index report, which is scheduled on Thursday, and the August nonfarm payrolls statistics, which are due on Friday, will be the main topics of discussion this week.
Investors are still cautious about China’s economic recovery and are concerned about the country’s demand as the second-largest oil user in the world.
