Oil rises ahead of critical US data
Oil headed for a weekly rise ahead of US inflation data.
Oil is headed for a weekly rise ahead of US inflation data that could provide more clues about the path of monetary policy and shape appetite for risk assets including commodities such as crude oil.
Brent rose above $89 a barrel and was up more than 2 percent for the week; US crude oil was near $84. The Fed’s preferred inflation number will be released later Friday and will come amid data showing weakening U.S. economic growth. Other indicators of price increases in the US are higher than expected, indicating that the timing of interest rate cuts may be postponed.
Crude oil has risen this year due to geopolitical risks in the Middle East, including OPEC+-imposed supply cuts and rising tensions between Israel and Iran that pushed Brent above $90 a barrel earlier this month. This week’s rise was also supported by a decline in US nationwide inventories.
“The focus is likely to remain at the macro level,” said Saxo Capital Markets Analyst Charu Chanana, adding that further acceleration in prices could cloud demand expectations. He also said weak US GDP data also raises concerns about stagflation.