Investing.com– Oil prices were slightly higher in Asian trading today. It continued to rise after a report by the Organization of the Petroleum Exporting Countries eased some concerns about slowing demand.
Crude oil prices also received little support from the US. It bought 1.2 million barrels of crude oil to replenish strategic reserves. Reports of a severe crackdown on Russian oil exports signal a tight market.
But gains in oil prices were contained after traders retreated ahead of key US inflation reports. It will be revealed at the end of today. This report is expected to determine the path of interest rates in the coming months.
Eurozone third quarter economic growth figures are also out. This group in particular stands at the height of recession.
It was up 0.1% at $82.77 a barrel, while it was up 0.2% at $78.44 by 20:58 ET (05:58 GMT).
Both contracts have sustained their steep losses over the past three weeks. It has been hit hard by worries about sluggish demand. After a series of reports of weak economic values from China, the US and the Eurozone
US CPI inflation and EU recession are key issues.
Markets are currently focused on US data due to be released later in the day. After receiving hawkish comments from several Federal Reserve officials over the past week,
Central bank officials have signaled that any further rate hikes will largely depend on inflation. Data on Tuesday is expected to show that CPI inflation eased in October. After exceeding expectations in the last two months,
Signs of lower inflation will favor the crude oil market. This is because the central bank is unlikely to raise interest rates next month.
The numbers will be revealed before US data is reported. of the Eurozone on Tuesday. Market focus is on whether the country entered a tech recession in the third quarter. Several weak economic indicators from Germany, the group’s largest economy, have raised concerns about a possible recession this year.
Eurozone GDP is expected to contract by 0.1% in the quarter in the three months to October 30.
OPEC Monthly Report
OPEC’s monthly report helped oil prices look lower this week after the alliance blamed speculators for driving down crude prices. And basic demand is strong, he said.
The consortium also raised its demand forecast for this year and maintained its 2024 demand outlook, largely citing strong demand from China. After the lifting of anti-Covid measures in early 2023
The report was originally OPEC’s last word on the oil market. Much attention will be focused on whether major producers Russia and Saudi Arabia will extend current output cuts until 2024.
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