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27/05/24
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Crude Prices Higher Before Inflation Data
On Monday, crude prices were over $1 per barrel higher in muted trade due to public holidays in the United States and Britain after a downbeat week hampered by the outlook for U.S. interest rates due to persistent inflation.
The Brent crude contract for delivery in July was 99 cents higher at $83.11 per barrel and the more active for delivery in August contract was $1.08 higher at $82.92 per barrel.
U.S. West Texas Intermediate (WTI) crude futures were $1.06 higher at $78.77 per barrel.
Last week, Brent lost around 2% and WTI close to 3% after minutes from the previous Federal Reserve meeting showed some officials were prepared to hike interest rates again if it was required to control persistently high inflation.
Recent Western economic data has moved rate cut expectations depending on geography.
Key European Central Bank (ECB) policymakers said on Monday although the bank could cut interest rates as inflation eases but must take its time to cut rates.
On Friday, figures for eurozone inflation are due and economists expect an increase to 2.5% wouldn’t stop the ECB from cutting rates next week.
The U.S. personal consumption expenditures index, the U.S. Federal Reserve’s preferred inflation measure will be in focus this week for more clues about interest rate policy.
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