By Yuka Obayashi
TOKYO (Reuters) – Oil prices remained stable in early Asian trade on Tuesday as investors awaited inflation data to assess future U.S. monetary policy and production policy decisions at the OPEC+ meeting on March 2. of June.
The July Brent crude contract fell 3 cents to $83.07 a barrel at 00:38 GMT. The most active August contract fell 4 cents to $82.85.
West Texas Intermediate (WTI) crude oil futures for July were at $78.68, up 96 cents, or 1.2%, from Friday’s close, having traded during a U.S. holiday for mark Memorial Day without a deal.
Oil prices rose more than 1% on Monday in weak trading due to holidays in Britain and the United States, following a downbeat week characterized by the outlook for US interest rates in the face of sticky inflation.
“Investors are focusing on U.S. inflation data to determine the timing of rate cuts,” said Satoru Yoshida, commodities analyst at Rakuten Securities, adding that the market is also closely watching the upcoming Organization of Exporting Countries meeting. of Petroleum and allies. known as OPEC+.
“We expect oil prices to rise in the coming days due to continued voluntary production cuts by oil producers and growing prospects for easing of US monetary policy,” he said, adding that the start of the driving season in the US will also provide support.
The US personal consumption expenditure index, expected this week, will be in the spotlight for further signals on interest rate policy. The index, which is expected to be released on May 31, is seen as the US Federal Reserve’s preferred measure of inflation.
German inflation data on Wednesday and euro zone readings on Friday will also be watched for signs of a cut in European rates that traders have predicted for next week.
All eyes are also on the upcoming OPEC+ online meeting on June 2.
Producers will discuss whether to extend voluntary production cuts of 2.2 million barrels per day into the second half of the year, with three sources from OPEC+ countries saying an extension was likely.
Meanwhile, Goldman Sachs on Monday raised its global oil demand forecast for 2030 and expects consumption to peak in 2034, in a potential slowdown in the adoption of electric vehicles (EV), keeping refineries running at high rates. higher than average until the end of this decade.
(Reporting by Yuka Obayashi; Editing by Stephen Coates)
