Oil prices remain unchanged as investors await data on inventories and the economy

As investors awaited a barrage of macroeconomic data due later this week that could suggest whether Europe and the U.S. continue to boost interest rates, Brent oil futures stayed slightly above $90 a barrel on Tuesday. The benchmark Brent contract for international markets fell 6 cents to $90.58 a barrel, while West Texas Intermediate oil futures inched down 2 cents to $87.27.

After Saudi Arabia and Russia declared they will continue their voluntary supply cutbacks of a combined 1.3 million barrels per day (bpd) through the end of the year, Brent last week hit $90 a barrel for the first time in ten months. The release of industry data on U.S. oil stockpiles, scheduled for Tuesday 2030, was eagerly anticipated by investors. In the week leading up to September 8, crude inventories were predicted to have decreased by around 2 million barrels, according to a preliminary Reuters poll released on Monday.

Also in the near future, the consumer price index (CPI) data for the United States for August, which is due on Wednesday, may give a hint as to whether further interest rate hikes are anticipated. On Thursday, the European Central Bank will reveal its decision on interest rates. The eurozone will grow more slowly than previously anticipated in 2023 and 2024, according to a prediction released by the European Commission on Monday.

This week will also see the publication of monthly reports from the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC). In light of the weak macroeconomic environment, the IEA reduced its 2024 oil demand growth prediction to 1 million bpd last month. In contrast, OPEC maintained its 2.25 million bpd demand growth prediction for 2024 in its August report.

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