• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 days They pay YOU to TAKE Natural Gas
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days What fool thought this was a good idea...
  • 5 hours A question...
  • 5 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 11 days The United States produced more crude oil than any nation, at any time.
Caspian Power Trio Aims to Electrify the European Union

Caspian Power Trio Aims to Electrify the European Union

Azerbaijan, Kazakhstan, and Uzbekistan plan…

Under-hedged U.S. Shale Patch Exposed To Falling Oil Prices

Under-hedged U.S. Shale Patch Exposed To Falling Oil Prices

Commodity analysts at Standard Chartered…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Prices Dip As Traders Brace For U.S. Inflation Data

  • Oil prices were down early on Tuesday morning as traders await tomorrow’s release of the April inflation data.
  • The inflation data should give traders an idea about whether further interest rate hikes from the Fed are likely.
  • Despite economic concerns, some analysts have begun to call the bottom for oil prices as inventories continue to decline.
Oil Prices

Crude oil prices began Tuesday trade with a dip as traders brace up for the April inflation data, to be released on Wednesday.

The data would give traders a hint about whether more rate hikes will be coming from the Fed after last week’s decision to raise the benchmark by another 25 basis points.

Brent crude was trading at $76.41 per barrel at the time of writing, with West Texas Intermediate at $72.60 per barrel. Both were down from opening although by a modest margin, after posting gains of over 2% on Monday.

Shut-in oil production of more than 200,000 bpd in Canada amid the wildfires in Alberta provided some support for prices.

"The market is cautious today ahead of the inflation data... With net long positions declining sharply over the last two weeks, a lot of traders are already out of the market, so volumes are low," DBS Bank lead energy analyst Suvro Sarkar told Reuters.

Some analysts, meanwhile, are calling a floor for oil. Citi’s Ed Morse told CNBC earlier this week that “Now it definitely feels like they’re at the bottom — there are multiple signs of that.

“Inventories built a lot during the first and second months of the year, and then they’ve come off. So that’s part of figuring that it’s at the bottom,” Morse added.

Meanwhile, the oil market is bracing up for even more volatility as traders rush to the exits amid continued fears for the state of the U.S. economy and global inflation trends.

Speculators have been consistently caught off-guard in the past two months, and many have now opted to stay away. Lower open interest and liquidity in the market is bound to make price swings even more extreme, according to analysts.

Some, however, expect stability after last week’s price rout.

"The oil market was extremely oversold and it will probably continue to stabilise as long as Wall Street is still confident the Fed will cut rates later this year," OANDA senior market analyst Edward Moya said in a note cited by Reuters.


By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News